Founded in 1902 and based in New York City, The Interpublic Group of Companies, Inc. (IPG) is a global powerhouse in marketing and advertising solutions. With a market cap of $8.8 billion, IPG leverages data-driven strategies to deliver innovative advertising, media, and communications services to brands worldwide. The company is slated to report its first-quarter earnings on Wednesday, April 23.
Ahead of this event, analysts project Interpublic Group to report a profit of $0.30 per share, down 16.7% from $0.36 per share in the year-ago quarter. The company has matched Wall Street’s EPS estimates in three of the last four quarters and missed on another occasion. In Q4, the company reported an EPS of $1.11, which missed the consensus estimate by 3.5%.
For fiscal 2025, analysts expect the company to report an EPS of $2.61, down 5.8% from $2.77 in fiscal 2024. However, its EPS is likely to rebound in FY2026, rising 8.1% annually to $2.82.
Interpublic Group's shares have dwindled 16% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 2.7% gain and the Communication Services Select Sector SPDR ETF’s (XLC) 5.9% returns over the same period.
IPG has trailed behind the broader market over the past year primarily due to a pullback in client spending amid economic and political uncertainty. As businesses face heightened caution, marketing and advertising budgets are often among the first to be trimmed. Additionally, regional pressures, such as weakness in major markets like the U.S., U.K., Europe, and Asia Pacific, have weighed on the company’s organic revenue.
IPG shares dropped 1.4% following its fourth-quarter earnings release on Feb. 12. The company reported a revenue of $2.9 billion, with its operating income coming in at $567.9 million. Looking ahead, IPG aims to maintain an adjusted EBITA margin of 16.6% for 2025.
Analysts' consensus view on Interpublic Group’s stock is fairly upbeat, with a "Moderate Buy" rating overall, a step up from “Hold” three months ago. Among the nine analysts covering the stock, four recommend a "Strong Buy," and five analysts suggest "Hold."
The average analyst price target for IPG is $33.12, indicating a 42.3% potential upside from the current levels.
