Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PUBLICIS GROUPE. We currently have 8 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
A tough year indeed but a number of headwinds are now behind
09 Feb 17
Publicis just reported weaker-than-expected organic sales for Q4 16 at -2.5% versus consensus at -0.6%, hurt by US contract losses and issues at Razorfish. For FY16, total revenues amounted to €9,733m, up 1.4% and +0.7% organically. Positively, the operating profit improved by 2%, implying a margin above the 15.4% consensus level at 15.6% (and up 0.10bp from FY15). Conversely, the bad news came from the €1.44bn write-down on the digital business (mostly relating to Publicis.Sapient, i.e. for €1.39bn), leading to a €527m net loss for the full year after impairments. The headline net income group share was above consensus, however, at €1,015m (AV was €1,031m) and headline EPS was in line at €4.46 (AV: €4.58). The proposed dividend is €1.85 per share (AV was €1.76), up 15.6% (payout at 42%). The group is guiding for a tough H1 17e, with “negative” organic growth in Q1 and a “slightly less negative” trend in Q2, still impacted by US account losses. H2 17e should record some improvement, mainly supported by the current good momentum in the new accounts wins. CEO Maurice Levy reiterated a margin improvement goal for FY17e while FY18e profitability is expected at the low end of the margin range (i.e. 17.3%).
And the winner is...
27 Jan 17
A little sooner than anticipated, Publicis announced yesterday evening the name of CEO Maurice Levy’s successor. As widely expected, from 1 June 2017, Arthur Sadoun will become the group’s new CEO while Maurice Levy (75) should have the role of Supervisory Board Chairman. Simultaneously, Publicis Media’s CEO Steve King will join the Management Board, subject to confirmation by shareholders at the end of May AGM.
A tough H2 16e with improvement still expected in FY17e
20 Oct 16
Publicis has just released slightly lower than expected Q3 organic revenue growth of +0.2% versus +0.8% for consensus. On a reported basis, total revenue amounted to €2.32bn, down 0.4% and up 1.5% at constant currency. For the 9-month period, the organic revenue growth was +1.9% (reported: +2.9% to €7,068m and +5.2% at CER).
Good H1 16 and focus on executing the new organisation for H2
04 Aug 16
Satisfactory set of results for H1 16 Publicis reported satisfactory results with revenues up 2.8% organically for the period (reported: +4.6% to €4,753m) and a flat operating margin of 13%. FY16 guidance is still for Q3 organic growth to be impacted by the FY15 account losses but the group positively confirmed solid progress in delivering savings and Sapient synergies. Publicis’ reorganisation/ transformation, leading to the creation of four “Solutions hubs” dedicated to serve clients on a transversal basis, was completed as of end-H1 16. Working on the execution will now be the focus over the next few months.
A promising start to the year, although still cautious for FY16e
19 Apr 16
Publicis reported much higher figures than expected with Q1 16 organic revenue growing +2.9% compared with its previous guidance of stable or slightly negative at worst. This is therefore far above a consensus expectation of +0.3% and our own flat forecast. Consolidated revenues for the quarter reached €2,291m, up 8.9% on a reported basis and +10% at CER.
Restored credibility and a transition year ahead...
11 Feb 16
Publicis reported better than expected Q4 organic revenue growth of +2.8% when the market expected less than 1% after the poor Q3 and 9 months trends (respectively +0.7% and +1%). For the full year, the organic revenue growth therefore reached +1.5%, above management's guidance of around +1%, with revenue amounting to €9,601m, up €2,346m from the previous year and positively impacted by forex (+€823m impact or +11.3%) and the integration of acquisitions (+€1,399m total net impact or +19.3%, namely coming from Sapient). The full-year adjusted OP was €1,487m, reflecting a 15.5% operating margin slightly above the consensus of 15.4% and compared to 16.3% in FY14. Headline net profit amounted to €901m and EPS to €4.39, up 20.6% and slightly above our €4.19 forecasts. The proposed dividend per share is raised by 33.3% to €1.60, giving a good signal to the market (payout at 39.5% from 37.3% in FY14 and FY18 goal reiterated at 42%). The FY16e guidance is highly cautious, pointing to modest organic revenue growth but with an improvement expected for all the group's financial metrics. Management estimates FY17e will show all the benefits on growth and margins coming from the current ongoing reorganisation/transformation.
16 Mar 17
4imprint (FOUR): 6% dividend yield for a growth stock? (BUY) | Cambridge Cognition* (COG): Amgen uses CANTAB technology in trial (CORP) | Seeing Machines* (SEE): H1 results show steady operational progress (CORP) | Allergy Therapeutics (AGY): Pollinex Quattro Birch Ph III EU trial starts (BUY) | Capital Drilling* (CAPD): FY results in line, with turnaround in exploration activity (CORP)
M&A coming to a company near you?
16 Mar 17
Markets have retained their relative strength over the last fortnight. We have seen a mixed reaction to the Budget last week, the passing of the Brexit Bill earlier in the week and the first interest rate hike by the Federal Reserve in the US yesterday. Against this backdrop, we have seen some notable M&A activity across a range of sectors which may move down the market capitalisation scale. We now face an extended period of heightened speculation but “no running commentary” regarding Brexit in the UK after Article 50 is triggered at the end of the month.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
6% dividend yield for a growth stock?
16 Mar 17
4imprint’s proven operating model continues to steadily gain market share from a low base. Capital requirements are low, acquisitions unlikely, pension risk significantly reduced and, hence, future cash flow is likely to be returned to shareholders. We expect the current $22m net cash balance to be retained, providing a cushion against any macro downturns, and dividend growth to continue to match EPS, supplemented by special dividends when net cash builds (possibly every other year). As such, the free cash flow yield, 5.1% in FY2018E 5.8% in FY 2019E, is a proxy for the dividend yield, highly attractive in our view for a proven growth stock.
10 Mar 17
We have run our new quantitative Slide Rule over the Support Services sector. Of the c.500 stocks we have ranked on a Quality, Value, Growth and Momentum basis in the small to mid-cap space, 21 Support Services stocks appear in the top 100. Fulcrum leads the pack, ranked no. 6 out of 500 (and not coincidentally our top pick for the year), closely followed by Brainjuicer (no.7), Sanne (no.8), Learning Technologies (no. 12) and Next Fifteen (no.16). These stocks have high ROCE on both an EBIT and cash basis, strong growth prospects, earnings and share price momentum and valuations that, in this context, remain attractive. At the other end of the spectrum, HSS, Management Consulting, Serco, Mitie and Lakehouse appear towards the bottom of the rankings. Strong returns could, of course, be made if any of these turn their fortunes around, and management has been changed at Lakehouse, Serco and Mitie.