Shares of ad giant Publicis plunge after cut to revenue guidance

Shares in French advertising conglomerate Publicis slumped after the group cut its 2019 revenue growth guidance. Late Thursday, the company reported lower-than-expected revenue for the second-quarter of 2019. Shares of Publicis plunged 8.5% to their lowest level since December 2012 in early trading on Friday. The company posted organic growth of 0.1% against analyst expectations of 0.7% for the quarter and put its 2020 targets under review. Brokerage Liberum downgraded Publicis to “hold” from “b


Shares in French advertising conglomerate Publicis slumped after the group cut its 2019 revenue growth guidance. Late Thursday, the company reported lower-than-expected revenue for the second-quarter of 2019. Shares of Publicis plunged 8.5% to their lowest level since December 2012 in early trading on Friday. The company posted organic growth of 0.1% against analyst expectations of 0.7% for the quarter and put its 2020 targets under review. Brokerage Liberum downgraded Publicis to “hold” from “b
Shares of ad giant Publicis plunge after cut to revenue guidance Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: lucy handley
Keywords: news, cnbc, companies, plunge, liberum, giant, north, america, guidance, main, company, shares, publicis, weakness, ad, growth, cut, revenue


Shares of ad giant Publicis plunge after cut to revenue guidance

Shares in French advertising conglomerate Publicis slumped after the group cut its 2019 revenue growth guidance.

Late Thursday, the company reported lower-than-expected revenue for the second-quarter of 2019. Shares of Publicis plunged 8.5% to their lowest level since December 2012 in early trading on Friday.

The company posted organic growth of 0.1% against analyst expectations of 0.7% for the quarter and put its 2020 targets under review.

Arthur Sadoun, the company’s chair and chief executive, said the company’s $4.4 billion acquisition of data marketing business Epsilon was the main reason for the review.

North America, one of its main markets, was down 1.7%, due to some of its consumer-packaged goods (CPG) clients spending less on traditional advertising, the company said in a statement. CPG makes up around 25% of its clients overall.

Brokerage Liberum downgraded Publicis to “hold” from “buy,” according to Reuters. “Operationally, the weakness in North America is the biggest concern given Publicis is the strongest player in North American media buying, which should be the highest margin part of the business and we now have two major agencies (WPP and Publicis) both having weakness in North America, which raises questions as to what is happening in this particular market,” Liberum wrote.


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: lucy handley
Keywords: news, cnbc, companies, plunge, liberum, giant, north, america, guidance, main, company, shares, publicis, weakness, ad, growth, cut, revenue


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