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Interpublic Group to Report Q4 Earnings: What's in the Offing?

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Interpublic Group (IPG - Free Report) is scheduled to release its fourth-quarter 2024 results on Feb. 12, before market open.

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

IPG’s Zacks Consensus Estimate surpassed in one of the trailing four quarters and met in the remaining three, the average surprise being 0.4%.

Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise

 

Interpublic Group’s Q4 Expectations

The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, indicating a 3.1% decrease from the year-ago quarter’s actual. The top line is expected to have been affected by a fall in the MD&E segment’s revenues.

Our estimate for fourth-quarter 2024 revenues from Media, Data & Engagement Solutions (MD&E) is pegged at $1.2 billion, hinting at a 5.6% decrease from the year-ago quarter’s actual. This segment’s revenues are anticipated to have declined due to MRM’s weak performance.

Our estimate for Integrated Advertising & Creativity Led Solutions’ (IA&C) revenues is pegged at $1.1 billion, suggesting a 1.1% rise from that reported in the fourth quarter of 2023. We expect this segment’s performance to have improved on the back of strong growth at Deutsche, its data-shaped, culturally shaped creative studio.

We expect revenues of $690.6 million from Specialized Communications Experiential Solutions (SC&E), implying a marginal rise from the year-ago quarter’s actual. Healthy growth at Octagon and Experiential Solution Group, and continued improvement in public relations at Weber and Goin are anticipated to have aided this segment’s revenues.

EBITA for the MD&E is expected to decline 19.1% year over year to $325.3 million. We estimate the IA&C and SC&E segments’ EBITA to grow 31.5% and 47.8% year over year to $236.4 million and $104.9 million, respectively. For the Corporate and Other segment, EBITA is likely to decline more than 100% to negative $57.7 million.

The consensus estimate for earnings per share is pegged at $1.15, suggesting a 2.5% fall 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 +1.16% 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.

S&P Global (SPGI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $3.5 billion, indicating a 10.3% year-over-year rise. For earnings, the consensus mark is pegged at $3.41 per share, suggesting growth of 9% 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 6.3%.

SPGI has an Earnings ESP of +1.33% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare its fourth-quarter 2024 results on Feb. 11.

Verisk (VRSK - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter 2024 top line is pegged at $734 million, suggesting 8.4% growth on a year-over-year basis. For earnings, the consensus mark is pegged at $1.6 per share, indicating a 14.3% increase 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 4.2%.

VRSK has an Earnings ESP of +3.00% and a Zacks Rank of 3 at present. The company is scheduled to declare its fourth-quarter 2024 results on Feb. 26.


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