Here’s What to Expect From Interpublic in (IPG) Q2 Earnings

The Interpublic Group of Companies, Inc. IPG is scheduled to release its second-quarter 2023 results on Jul 21, before the market open.

Interpublic has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matching on one instance. The average surprise is 9.5%.

Q2 Expectations

The consensus estimate for the top line is currently pegged at $2.39 billion, slightly higher than the year-ago actual figure.

The Zacks Consensus Estimate for EPS is pegged at 61 cents, down 3.2% year over year. Growing operational costs are likely to have weighed on the company’s bottom line.

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

Segmental Expectations

Our estimate for second-quarter 2023 revenues, before billable expenses from Media, Data & Engagement Solutions (MD&E), is currently pegged at $962.3 million, down 7.5% from the second-quarter 2022 reported figure.

Our estimate for Integrated Advertising & Creativity Led Solutions (IA&C) revenues is currently pegged at $959.3 million, 13.1% lower than the year-ago reported figure. Our estimate for revenues from Specialized Communications & Experiential Solutions (SC&E) is currently pegged at $720.3 million, indicating a fall of 3.4% from the year-ago reported figure.

Adjusted EBITA of MD&E, IA&C and SC&E segments are likely to have witnessed a respective fall of 7.9%, 23.1% and 12% to $142.5 million, $136.3 million and $52.3 million, respectively. For Corporate and Other, adjusted EBITA is likely to have gained 7.9% to negative $19.3 million.

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 ESPand 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 before they’re reported with our Earnings ESP Filter.

IPG has an Earnings ESP of 0.00% and a Zacks Rank of 3.

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.

Aptiv APTV currently has an ESP of +12.88% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is scheduled to report second-quarter 2023 results on Aug 3, before the market open.

The ZacksConsensus Estimate for the bottom line is pegged at $1.01 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.7 billion, up 15.8% from the figure reported a year ago. APTV had an average negative surprise of 11% in the previous four quarters.

Avis Budget CAR currently has an ESP of +1.46% and a Zacks Rank of 1. It is scheduled to report second-quarter 2023 results on Jul 31, after the market close.

The Zacks Consensus Estimate for earnings is pegged at $9.78 per share, down 38.6% from the year-ago figure. The consensus mark for revenues is pegged at $3.19 billion, down 1.6% from the prior-year figure. CAR had an average surprise of 65.2% in the previous four quarters.

S&P Global SPGI currently has an ESP of +1.38% and a Zacks Rank of 3. It is scheduled to report second-quarter 2023 results on Jul 27, before the market open.

The Zacks Consensus Estimate for the bottom line is pegged at $3.09 per share, up 10% from the year-ago reported figure. The consensus mark for revenues is pegged at $3.05 billion, up 1.9% from the prior-year reported figure. APTV had a negative surprise of 3.1%, on average, in the previous four quarters.

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