That is the time of yr when a variety of firms unveil their efficiency within the prior yr. Final week noticed fairly a number of FTSE 100 and FTSE 250 companies unveil their annual outcomes for 2024.

Some, it needs to be mentioned, have been rather more spectacular than others.

Ocado: some promise, however an extended solution to go

One FTSE 250 agency that reported its outcomes, solely to be met by an enormous share price fall in response, was Ocado (LSE: OCDO).

The outcomes have been what we have now come to anticipate from the enterprise.

A lot of speak about potential? Sure. Explanations of how the enterprise is gearing up for long-term efficiency? Sure.

Earnings? No.

The loss-making agency continues to burn money.

For now, I nonetheless regard its capital-intensive enterprise mannequin as unproven in relation to profitability. So, for now, I’m avoiding the shares.

However whereas I’ve lengthy been bearish concerning the prospects for Ocado, the outcomes did additionally present a number of probably promising factors to chew over.

One is ongoing stable development: each the retail three way partnership with Marks & Spencer and the outsourcing providers enterprise supplied to retailers globally proceed to develop revenues at tempo. That might lay the foundations for long-term success.

I used to be additionally struck by the corporate’s forecast that it’s going to flip money stream constructive throughout the subsequent couple of years. I’ll consider it once I see it, however that could possibly be a sport changer for the FTSE agency’s funding case.

So, though I’m avoiding Ocado shares for now, I can be keeping track of its enterprise efficiency.

WPP: adapting to a altering world

Who would wish to be in promoting proper now?

Some shoppers are spending much less, complete markets like China are weak, and AI threatens to switch a variety of what has historically been executed by advert companies.

When company community WPP (LSE: WPP) unveiled its full-year outcomes, the share price dropped like a lead bomb in response.

In some methods I perceive that.

Revenues are set to say no. The corporate has diminished its workforce by hundreds. That’s not usually an indication of power.

However that partly displays its elevated use of AI. AI is a menace to a few of WPP’s artistic actions — however I additionally reckon it may assist the agency lower prices considerably. That could possibly be good for earnings.

In the meantime, WPP has an enormous enterprise, a big world consumer base, and is likely one of the promoting business leaders.

It saved its annual dividend per share, however given the weakened share price, that equates to a dividend yield of 6.1%. That’s effectively in extra of the present FTSE 100 common.

I didn’t suppose WPP’s outcomes have been too unhealthy however its shares acquired hammered by the Metropolis and sunk to a four-year low.

That might probably supply me a sexy shopping for alternative.

However I’m nonetheless questioning whether or not I’m lacking one thing different buyers are very anxious about, so I’m eyeing WPP as a possible addition to my portfolio — however don’t but plan to make a transfer.