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Interpublic (IPG) to Report Q2 Earnings: What's in Store?

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The Interpublic Group of Companies, Inc. (IPG - Free Report) is scheduled to report second-quarter 2019 results on Jul 23, before the opening bell.

So far this year, shares of Interpublic have gained 10.7% compared with 8.1% rise of the industry it belongs to and 17.6% rise of the Zacks S&P 500 composite.

 

Let's check out how things are shaping up for the announcement.

What to Expect This Time

Interpublic’s top line is expected to be hurt by the negative impact of foreign currency movement, which is likely to be partially offset by the positive impact of organic growth and acquisitions. The Zacks Consensus Estimate for second-quarter 2019 revenues stands at $2.12 billion, indicating year-over-year decrease of 11.3%.

Organic growth in the United States is expected to be driven by strength across media and advertising businesses. Solid revenues from Latin America, Asia Pacific, Europe and UK are likely to drive organic growth in international markets.

In first-quarter 2019, net revenues of $2.00 billion increased 13% year over year. The company witnessed organic net revenue growth of 5.7% in the United States and 7.7% in international markets.

The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at 44 cents, indicating growth of 2.3% from the year-ago reported figure. In first-quarter 2019, adjusted earnings of 11 cents per share increased year over year.

What Our Model Says

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Interpublic has an Earnings ESP of -2.27% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on second-quarter 2019 earnings:

S&P Global (SPGI - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2.  The company is slated to report results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #3. The company is slated to release results on Jul 24.

Fiserv has an Earnings ESP of +0.79% and a Zacks Rank #3. The company is slated to report results on Jul 25.

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Interpublic Group of Companies, Inc. (The) (IPG) - free report >>

S&P Global Inc. (SPGI) - free report >>

IQVIA Holdings Inc. (IQV) - free report >>

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