Publicis Earnings: Solid Revenue Growth Continues, Maintaining Performance Edge Versus Peers

Narrow-moat-rated Publicis delivered another solid quarter. Revenue growth during the quarter met FactSet consensus expectations, and management increased the lower end of its full-year revenue outlook range. The updated revenue outlook is now for annual organic growth of 5.5% to 6% (up from 5% to 6%). This was as we predicted, with management previously leaving the door open for growth to “accelerate further” in the second half of 2024. We were already looking for full-year organic growth to come in at 5.8%, at the higher end of the previous range. Given current results largely confirm our expectations, we are leaving our fair value estimate of EUR 104 in place. Shares were trading at our fair value heading into earnings, and shares remain fairly valued after earnings.