The Interpublic Group of Companies, Inc. (IPG), with a market cap of $10.86 billion, is a leading global marketing solutions provider. Headquartered in New York City, Interpublic operates across multiple countries, offering a comprehensive range of advertising, marketing, and communications services to businesses and institutions worldwide. The company is scheduled to report its fiscal second-quarter earnings for 2024 on Friday, Jul. 19.
Ahead of the event, analysts expect IPG to report a profit of $0.61 per share, down 17.6% from $0.74 per share in the year-ago quarter. In the last four quarters, the company has missed Wall Street’s bottom-line estimates in one and beat or matched on three other occasions.
IPG’s adjusted earnings of $0.36 per share for the last quarter matched the consensus estimate. In Q1, IPG's revenues declined due to digital agency challenges and telecom client losses, despite robust growth in the MD&E segment driven by IPG Mediabrands.
For fiscal 2024, analysts expect IPG to report EPS of $2.80, down 6.4% from $2.99 in fiscal 2023. However, its fiscal 2025 EPS is expected to grow 7.1% year over year to $3.
IPG stock is down 11.9% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.1% returns. The stock has also lagged behind the Vanguard Communication Services Index Fund ETF Shares (VOX), which has gained 18.2% over the same time frame.
IPG reported Q1 results on Apr. 24, and the shares gained 1.3% that day.
The consensus opinion on IPG stock is optimistic, with an overall “Moderate Buy” rating. Of nine analysts covering the stock, three advise a “Strong Buy” rating, and six recommend a “Hold.” The average analyst price target for IPG is $34.67, indicating a potential upside of 20.5% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
