Yahoo Finance Here's What Analysts Are Forecasting For The Interpublic Group of Companies, Inc. (NYSE:IPG) After Its First-Quarter Results
Investors in The Interpublic Group of Companies, Inc. (NYSE:IPG) had a good week, as its shares rose 2.4% to close at US$31.47 following the release of its first-quarter results. It was a credible result overall, with revenues of US$2.2b and statutory earnings per share of US$2.85 both in line with analyst estimates, showing that Interpublic Group of Companies is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Interpublic Group of Companies
Taking into account the latest results, Interpublic Group of Companies' nine analysts currently expect revenues in 2024 to be US$9.44b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 8.1% to US$2.64 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.51b and earnings per share (EPS) of US$2.64 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$35.59, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Interpublic Group of Companies, with the most bullish analyst valuing it at US$39.00 and the most bearish at US$31.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Interpublic Group of Companies' revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2024 being well below the historical 3.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Interpublic Group of Companies is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$35.59, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Interpublic Group of Companies going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Interpublic Group of Companies , and understanding this should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
