Ipsos slides after mixed Q1 results marked by US weakness

Ipsos SA

19/04/2024 09:37

** Shares in French market research firm Ipsos  ISOS.PA 
drop 6.6% after what Midcap Partners analyst called a "mixed" Q1
performance
    ** Sales growth in EMEA and Asia was offset by a downturn in
the Americas, weighed down by the U.S.
    ** For the U.S., Ipsos cites a moderate recovery by major
tech customers, termination of some major Public Affairs
contracts, a wait-and-see attitude ahead of the presidential
elections, and a temporary setback in the healthcare sector
    ** Midcap Partners notes Ipsos is dependent on the state of
the world economy and consumer trends, with its consumer segment
accounting for almost a half of its business
    ** "The (2024) dynamic will depend on the recovery of TMT
customers (17% of 2023 sales) and US tech (7% of 2023 sales),
the recovery of China (7% of 2023 sales)," the broker says
    ** Ipsos confirms its 2024 outlook for organic sales growth
of more than 4% and an operating margin of around 13%
    ** The shares are on track for their worst day since July 26
if losses hold

 (Reporting by Dimitri Rhodes)
 ((Dimitri.Rhodes@thomsonreuters.com))