Interpublic Group to Report Q3 Earnings: What's in the Offing?

Core Viewpoint - Interpublic Group of Companies, Inc. (IPG) is expected to report its third-quarter 2024 results on October 22, with a consensus estimate for revenues at $2.3 billion, indicating a slight decline from the previous year [1][2]. Revenue Expectations - The revenue from Specialized Communications Experiential Solutions (SC&E) is estimated at $616.5 million, reflecting a 4.1% decrease year-over-year due to cost-cutting by a major client [2]. - Media, Data & Engagement Solutions (MD&E) revenues are projected at $1.1 billion, also indicating a slight decline, attributed to decreased performance in digital specialist agencies and MRM revenues [2]. - Integrated Advertising & Creativity Led Solutions (IA&C) revenues are expected to rise by 1.3% to $978.8 million, driven by growth in IPG Health at Deutsch LA [3]. EBITA Projections - EBITA for MD&E, SC&E, and IA&C segments is anticipated to grow by 7%, 70.3%, and 21.4% year-over-year, reaching $222.5 million, $70.3 million, and $158.3 million, respectively [3]. - The Corporate and Other segment is expected to see a decline in EBITA of more than 100%, resulting in a negative $37.9 million [3]. Earnings Per Share - The consensus estimate for earnings per share is set at 70 cents, indicating no change from the previous year's quarter [3]. Earnings Prediction Model - The current model does not predict an earnings beat for IPG, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [4].