The New York based Interpublic Group of Companies, Inc. (IPG) provides advertising and marketing services. Valued at a market cap of $11.6 billion, the company specializes in consumer advertising, digital marketing, public relations, communications planning, and media buying. IPG will announce its fiscal Q3 earnings results on Friday, Oct. 18.
Ahead of this event, analysts project the advertising company to report a profit of $0.70 per share, in line with the year-ago quarter. The company has beaten or matched Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion.
In Q2, the company reported an EPS of $0.61, which met the consensus estimate. The results were driven by a moderate acceleration in organic growth with decent growth in IPG Mediabrands and IPG Health.
For fiscal 2024, analysts expect IPG to report an EPS of $2.83, down 5.4% from $2.99 in fiscal 2023.
Shares of Interpublic Group have declined 4.9% on a YTD basis, significantly underperforming both the S&P 500 Index's ($SPX) 19.9% gain and the Communication Services Select Sector SPDR ETF’s (XLC) 24.1% returns over the same period.
On Jul. 24, shares of IPG fell 1.2% after its Q2 earnings release, despite the company’s total revenues of $2.7 billion beating the consensus estimates of $2.3 billion and increasing 1.6% year-over-year. However, its adjusted earnings decreased 17.6% on a year-over-year basis.
Analysts' consensus view on Interpublic Group’s stock is cautious, with a "Hold" rating overall. Among ten analysts covering the stock, two recommend a "Strong Buy," five suggest "Hold," and three indicate a “Strong Sell.”
This configuration is slightly less bullish than three months ago, with three analysts suggesting a "Strong Buy." The average analyst price target for IPG is $31.50, indicating a 1.4% potential upside 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.
