Interpublic Group to Report Q3 Earnings: What's in the Offing?

The Interpublic Group of Companies, Inc. IPG is scheduled to release its third-quarter 2024 results on Oct. 22, before market open.

See Zacks Earnings Calendar to stay ahead of market-making news.

IPG’s earnings surprise history is not impressive. It has surpassed the Zacks Consensus Estimate in one of the trailing four quarters, met in two instances and missed once, the average negative surprise being 1.2%.

Interpublic Group’s Q3 Expectations

The Zacks Consensus Estimate for revenues is pegged at $2.3 billion, indicating a slight decline from the year-ago quarter’s actual. The top line is expected to have been affected by a fall in experiential groups and digital specialist agencies.

We expect revenues of $616.5 million from Specialized Communications Experiential Solutions (SC&E), suggesting a 4.1% decrease from the year-ago quarter’s actual. The decline in the experiential group due to cost-cutting by a major client at Jack Morton is anticipated to have decreased this segment’s revenues.

Our estimate for third-quarter 2024 revenues from Media, Data & Engagement Solutions (MD&E) is pegged at $1.1 billion, hinting at a slight decline from the year-ago quarter’s actual. The decrease in the company’s digital specialist agencies and a fall in MRM revenues are likely to have resulted in this segment’s downfall.

Our estimate for Integrated Advertising & Creativity Led Solutions’ (IA&C) revenues is pegged at $978.8 million, indicating a 1.3% rise from that reported in the third quarter of 2023. We expect this segment’s performance to be improved by growth in IPG Health at Deutsch LA.

EBITA for the MD&E, SC&E and IA&C segments is anticipated to grow 7%, 70.3% and 21.4% year over year to $222.5 million, $70.3 million and $158.3 million, respectively. For the Corporate and Other segment, EBITA is likely to decline more than 100% to negative $37.9 million.

The consensus estimate for earnings per share is pegged at 70 cents, suggesting no change from the year-ago quarter’s actual.

What Our Model Says About IPG

Our proven model does not conclusively predict an earnings beat for IPG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

IPG has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

TransUnion TRU: The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $1.1 billion, indicating a 9.6% year-over-year rise. For earnings, the consensus mark is pegged at $1 per share, suggesting growth of 12.1% from the year-ago quarter’s actual. The company beat the consensus estimate in the past three quarters and missed once, with an average surprise of 5.8%.

TRU currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is scheduled to declare its third-quarter 2024 results on Oct. 23.

Visa V: The Zacks Consensus Estimate for the company’s third-quarter 2024 top line is pegged at $9.5 billion, suggesting 10.1% growth on a year-over-year basis. For earnings, the consensus mark is pegged at $2.6 per share, indicating a 10.7% increase from the year-ago quarter’s actual. The company beat the consensus estimate in the past four quarters, with an average surprise of 2.9%.

V currently has an Earnings ESP of +0.23% and a Zacks Rank of 3. The company is scheduled to declare its third-quarter 2024 results on Oct. 29.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. 

See them now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 
Visa Inc. (V): Free Stock Analysis Report
 
Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report
 
TransUnion (TRU): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research