Interpublic (IPG) to Report Q1 Earnings: What's in the Card?

Core Viewpoint - The Interpublic Group of Companies, Inc. (IPG) is expected to report its first-quarter 2024 results on April 24, with a history of earnings surprises, having exceeded the Zacks Consensus Estimate in three of the last four quarters, averaging a surprise of 10.2% [1] Q1 Expectations - The Zacks Consensus Estimate for IPG's revenue is $2.2 billion, indicating a slight decline from the previous year's figure, attributed to declines in digital specialist agencies and client losses in the telecom sector at McCann [2] - Revenue estimates for Specialized Communications & Experiential Solutions (SC&E) are $573.4 million, showing a slight decline from the previous year [3] - Integrated Advertising & Creativity Led Solutions (IA&C) revenues are estimated at $928.7 million, reflecting a 3.7% decrease from the year-ago quarter [3] - Media, Data & Engagement Solutions (MD&E) revenues are projected at $1 billion, suggesting a 3.1% increase from the first quarter of 2023, driven by growth at IPG Mediabrands [3] EBITA Estimates - EBITA for MD&E, SC&E, and IA&C segments is expected to increase by 65.5%, 8.5%, and less than 1% to $130.9 million, $49 million, and $98.5 million, respectively [3] - For Corporate and Other, EBITA is anticipated to rise 5.7% to negative $13.1 million [3] Earnings Per Share - The consensus estimate for earnings per share is 36 cents, indicating a 5.3% decline from the previous year's figure, primarily due to revenue dips in SC&E and IA&C segments [4] 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 4 (Sell), indicating lower odds of exceeding earnings expectations [5] Stocks to Consider - Other companies in the Business Services sector with favorable earnings predictions include Automatic Data Processing (ADP) and Envestnet (ENV), both showing positive growth estimates and past earnings surprises [6][7]