Interpublic Group to Report Q1 Earnings: What's in the Offing?

Interpublic Group IPG is scheduled to release its first-quarter 2025 results on April 24, before market open.

IPG’s Zacks Consensus Estimate missed in one of the trailing four quarters and met in the remaining three, with an average negative surprise of 0.9%.

Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise

Interpublic Group of Companies, Inc. (The) price-consensus-eps-surprise-chart | Interpublic Group of Companies, Inc. (The) Quote

Interpublic Group’s Q1 Expectations

The Zacks Consensus Estimate for revenues is pegged at $2 billion, indicating an 8.3% decrease from the year-ago quarter’s actual. The consensus estimate for earnings per share is pegged at 30 cents, suggesting a 16.7% fall from the year-ago quarter’s actual. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Our projection for first-quarter 2025 revenues from Media, Data & Engagement Solutions (MD&E) is pegged at $927.5 million, indicating a 4.7% decline from the year-ago quarter’s actual. The detriment to this segment’s revenues is likely to have been caused by the decrease at McCann Relationship Marketing.

Our estimate for Integrated Advertising & Creativity Led Solutions’ (IA&C) revenues is pegged at $850 million, implying an 11.8% fall from that reported in the first quarter of 2024. We predict revenues of $544.9 million from Specialized Communications Experiential Solutions (SC&E), implying a decline of 2.5% from the year-ago quarter’s actual.

EBITA for the MD&E is expected to jump 54.8% year over year to $144.3 million. We estimate the IA&C segment’s EBITA to decline 3% to $104.6 million, while the same is anticipated to increase 10.3% to $48.4 million for the SC&E segment. For the Corporate and Other segment, EBITA is likely to be a negative $27.6 million compared with the negative $40.1 million reported in the year-ago quarter.

What Our Model Says About IPG

Our proven model does not conclusively predict an earnings beat for Interpublic Group 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Interpublic Group 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.

Booz Allen Hamilton BAH: The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2025 revenues is pegged at $3 billion, indicating year-over-year growth of 8.9%. For earnings, the consensus mark is pegged at $1.59, suggesting 19.6% growth from the year-ago quarter’s reported figure. The company beat the consensus estimate in the past three quarters and missed once, with an average surprise of 6.7%.

BAH carries an Earnings ESP of +5.74% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare its fourth-quarter fiscal 2025 results on May 23.

WM WM: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at 6.1 billion, indicating year-over-year growth of 18.2%. The consensus estimate for earnings is pegged at $1.66 per share, implying a year-over-year decline of 5.1%. The company beat the consensus estimate in two of the past four quarters, missed once and met once, with an average surprise of 3.9%.

WM has an Earnings ESP of +1.87% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter 2025 results on April 28.

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This article originally published on Zacks Investment Research (zacks.com).

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