Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Publicis Groupe SA (EPA:PUBP) (EPA:PUB) stock climbed 2% following the announcement of its fourth quarter results, which revealed a stronger-than-expected organic growth of 6.3%. This performance surpassed the analyst consensus, which anticipated growth 5.7%, respectively.
The company’s forward guidance for 2025 also aligned with consensus expectations, suggesting potential for slight upgrades based on the robust fourth quarter figures. The advertising giant reported a free cash flow (FCF) of €1,838 million.
For 2025, Publicis aims for an organic growth of 4% to 5%, with the lower end being attainable under current market conditions and the higher end dependent on an improved macroeconomic environment. The company expressed confidence in significantly outperforming the industry for the sixth consecutive year in 2025.
Publicis anticipates an operating margin slightly above 18% for 2025, a slight increase from the 18% expected in 2024. The guidance for FCF before working capital changes is projected to be between €1.9 billion to €2 billion. These projections are generally in line with market expectations, which forecast an organic growth of 4.6% and an operating margin of 18.1%.
Morgan Stanley (NYSE:MS) commented on Publicis’ outlook, stating, "We view the organic growth guide as relatively conservative and don’t see the reason for a slowdown vs 2024 (5.8%), we expect 5.6% ’25 org growth. We expect the shares to slightly outperform the market on strong finish to 2024." This analyst quote reflects a positive outlook on the company’s stock performance.
In its capital allocation for 2025, Publicis outlined a dividend (with a 2024 dividend of €3.60 per share), mergers and acquisitions (with an envelope of approximately €800-900 million based on the FCF guidance), and a share buyback program.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.