Yahoo Finance Interpublic (IPG) to Report Q1 Earnings: What's in the Card?
The Interpublic Group of Companies, Inc. IPG is scheduled to release its first-quarter 2024 results on Apr 24, before market open.
IPG has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missing on one instance, the average surprise being 10.2%.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
Interpublic Group of Companies, Inc. (The) price-eps-surprise | Interpublic Group of Companies, Inc. (The) Quote
Q1 Expectations
The Zacks Consensus Estimate for the top line is pegged at $2.2 billion, suggesting a slight decline from the year-ago quarter’s reported figure. It is likely to have resulted from the decline at digital specialist agencies of the company and client losses in the telecom sector at McCann.
We anticipate revenues from Specialized Communications & Experiential Solutions (SC&E) of $573.4 million, indicating a slight decline from the year-ago quarter’s actual. Our estimate for Integrated Advertising & Creativity Led Solutions’ (IA&C) revenues is pegged at $928.7 million, suggesting a 3.7% dip from the year-ago quarter’s reported figure. This is likely to have been caused by some of the company’s traditional offerings. Our estimate for first-quarter 2024 revenues, before billable expenses from Media, Data & Engagement Solutions (MD&E), is pegged at $1 billion, implying a 3.1% rise from the first-quarter 2023 reported figure. Continued growth at IPG Mediabrands is likely to have driven this segment’s revenue growth.
EBITA of the MD&E, SC&E and IA&C segments is likely to increase 65.5%, 8.5% and less than 1% to $130.9 million, $49 million and $98.5 million, respectively. For Corporate and Other, EBITA is likely to rise 5.7% to negative $13.1 million.
The consensus estimate for earnings per share is pegged at 36 cents, indicating a 5.3% decline from the year-ago reported figure. The decline in the bottom line is likely to have been caused by a dip in revenues in the SC&E and IA&C segments.
What Our Model Says
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 4 (Sell).
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
Automatic Data Processing ADP: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $5.2 billion, indicating year-over-year growth of 6%. For earnings, the consensus mark is pegged at $2.8 per share, suggesting a 9.5% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the past four quarters, with an average surprise of 2.8%.
ADP currently has an Earnings ESP of +1.72% and a Zacks Rank of 2. The company is scheduled to declare its first-quarter results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Envestnet ENV: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $324.9 million, indicating year-over-year growth of 8.8%. For earnings, the consensus mark is pegged at 54 cents per share, suggesting a 17.4% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the past four quarters, with an average surprise of 7.7%.
ENV currently has an Earnings ESP of +1.23% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter results on May 7.
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Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Envestnet, Inc (ENV) : Free Stock Analysis Report
