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Interpublic (IPG) to Report Q3 Earnings: What's in Store?

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The Interpublic Group of Companies, Inc. (IPG - Free Report) is scheduled to report third-quarter 2019 results on Oct 22, before the opening bell.

So far this year, shares of Interpublic have gained 0.7% compared with 5.1% decline of the industry it belongs to and 18.1% 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

Favorable impact of organic growth and acquisitionsis likely to have partially offset the negative impact of foreign currency movement. This is expected to get reflected in Interpublic’s third-quarter 2019 revenues, the Zacks Consensus Estimate for which is pegged at $2.07 billion, indicating growth of 9.3% from the year-ago quarter reported figure. In second-quarter 2019, total revenues of $2.52 billion increased 5.4% year over year.

Organic growth, both in the United States and internationally, increased sequentially in the second quarter, a trend that is most likely to have continued in the third quarter because of the combined effect of net client wins and net higher spending from existing clients.

The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at 48 cents, flat year over year. In second-quarter 2019, adjusted earnings of 46 cents per share increased 4.5% year over year.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Interpublic this season. 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’s not the case here. 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 0.00% and a Zacks Rank #3.

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 third-quarter 2019 earnings:

S&P Global (SPGI - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #2. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

TransUnion (TRU - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #3. The company is slated to release results on Oct 22.

Verisk (VRSK - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29.

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