Valued at a market cap of $9.4 billion, The Interpublic Group of Companies, Inc. (IPG) provides advertising and marketing services. The New York-based company specializes in consumer advertising, digital marketing, public relations, communications planning and media buying, and specialized communications disciplines. It is expected to announce its fiscal Q2 earnings for 2025 on Wednesday, Jul. 23.
Ahead of this event, analysts expect this advertising and marketing company to report a profit of $0.55 per share, down 9.8% from $0.61 per share in the year-ago quarter. The company has met or surpassed Wall Street’s earnings estimates in three of the last four quarters, while missing on another occasion. In Q1, IPG’s EPS of $0.33 outpaced the forecasted figure by 10%.
For fiscal 2025, analysts expect IPG to report a profit of $2.63 per share, down 5.1% from $2.77 per share in fiscal 2024. Nonetheless, its EPS is expected to rebound in fiscal 2026 and grow by 7.6% year-over-year to $2.83.
Shares of IPG have declined 10.6% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 13% return and the Communication Services Select Sector SPDR Fund’s (XLC) 24.9% uptick over the same time frame.
On Apr. 24, shares of IPG surged 4.5% following its Q1 earnings release. While the company’s revenue before billable expenses declined 8.5% year-over-year to $2 billion, it came in-line with the consensus estimates. Moreover, its adjusted EPS of $0.33 dropped 8.3% from the year-ago quarter but topped the analyst expectations by 10%. IPG had previously signaled that account activity over the prior twelve-month period will be weighed on this year. However, management noted that the impact was lessened in the quarter by sound underlying performance, with notable growth at IPG Mediabrands, Deutsch, Golin, and Acxiom.
Wall Street analysts are moderately optimistic about IPG’s stock, with a "Moderate Buy" rating overall. Among nine analysts covering the stock, three recommend "Strong Buy," and six advise “Hold.” The mean price target for IPG is $30.44, which indicates a 19.1% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
