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Here's What to Expect From Interpublic's (IPG) Q4 Earnings

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The Interpublic Group of Companies, Inc. (IPG - Free Report) is scheduled to release its fourth-quarter 2023 results on Feb 8, before 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 13.2%.

Q4 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $2.57 billion, slightly above the year-ago actual figure. Growth in Healthcare Media Offerings and Public Relations and Experiential Offerings is likely to have been the reason for such revenue growth.

The consensus estimate for earnings per share is pegged at $1.16, indicating 13.7% growth from the year-ago figure. A diversified revenue stream and growth in key business areas are expected to have driven such bottom-line growth.

Segmental Expectations

Our estimate for fourth-quarter 2023 revenues, before billable expenses from Media, Data & Engagement Solutions (MD&E), is currently pegged at $1.14 billion, up 8.3% from the fourth-quarter 2022 reported figure. The onboarding of the three distinct media brand companies, KINESSO, Matterkind, and Reprise that enhances the effectiveness, efficiency, and simplicity of media activation is likely to have been the driver of such growth.

Our estimate for revenues from Specialized Communications & Experiential Solutions (SC&E) is currently pegged at $393.9 million, indicating a 10.5% increase from the year-ago reported figure. The company’s win of three AI patents for machine learning is likely to have boosted its revenues.

Our estimate for Integrated Advertising & Creativity Led Solutions (IA&C) revenues is currently pegged at $1.05 billion, down 8.5% from the year-ago reported figure.

Adjusted EBITA of MD&E, IA&C and SC&E segments are likely to have witnessed an increase of 16.8%, 30.7% and more than 100% to $293 million, $252.7 million and $116.6 million, respectively. For Corporate and Other, adjusted EBITA is likely to decline 9.3% to negative $35.6 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 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 before they’re reported with our Earnings ESP Filter.

IPG has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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.

Waste Connections (WCN - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.03 billion, indicating growth of 8.6%. For earnings, the consensus mark is pegged at $1.08 per share, up 21.4% from the year-ago quarter. The company beat the consensus estimate in each of the past four quarters with an average surprise of 1.48%.

WCN currently carries an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 13.

Waste Management (WM - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $5.19 billion, indicating growth of 5.1%. For earnings, the consensus mark is pegged at $1.52 per share, up 16.9% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched on the other two instances. It has a negative average surprise of 1%.

FI currently carries an Earnings ESP of +0.46% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 12.

Fidelity National (FIS - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.52 billion, indicating a decline of 32.2%. For earnings, the consensus mark is pegged at 95 cents per share, down 44.4% from the year-ago quarter figure. The company beat the consensus estimate in three of the past four quarters and missed on the other instance. It has an average negative surprise of 7%.

FIS currently carries an Earnings ESP of +3.40% and a Zacks Rank of 3. The company is scheduled to declare its fourth-quarter results on Feb 26.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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