Zacks Research Issues Negative Earnings Forecast for Interpublic Group of Companies

On March 5, 2025, Zacks Research analysts updated their earnings estimates for the Interpublic Group of Companies, Inc. (NYSE:IPG). They lowered their forecast for the first quarter of 2025, now predicting earnings of $0.37 per share, down from the prior estimate of $0.59. This news comes as the consensus for the full-year earnings remains at $2.66 per share. Additionally, Zacks Research has projected earnings of $0.84 per share for the fourth quarter of 2025.

Other financial research firms have also recently shared their perspectives on the stock. For instance, JPMorgan Chase & Co. upgraded Interpublic from a "neutral" rating to an "overweight" rating, increasing their target price for the stock from $32.00 to $39.00 as of January 27. Meanwhile, Wells Fargo & Company changed their rating from "underweight" to "equal weight", raising the target price from $26.00 to $34.00 on December 10. Similarly, Barclays amended their rating from "equal weight" to "overweight" with a new target price of $36.00, while UBS Group adjusted their rating from "sell" to "neutral", lowering the target price from $29.00 to $27.00. BNP Paribas also upgraded the stock from "underperform" to "outperform", setting a target price of $38.00.

As a result of these activities, one analyst rated the stock as a sell, five rated it as a hold, and four analysts recommended a buy. Data from MarketBeat.com indicates that the consensus rating remains a "Hold" with an average target price of $33.50.

Current Stock Performance

The Interpublic Group of Companies' stock price opened at $28.20 recently, reflecting a 3.2% increase. The company boasts a market capitalization of $10.51 billion and a price-to-earnings ratio of 15.41, with its shares demonstrating a beta of 1.14. Over the past year, the stock reached a low of $26.15 and a high of $35.17. The company has key liquidity ratios, with both a quick ratio and current ratio of 1.09, and a debt-to-equity ratio standing at 0.77.

For reference, the last reported quarterly earnings occurred on February 12, where Interpublic reported $1.11 EPS, which was a shortfall from the consensus estimate of $1.15. This result also highlighted a return on equity of 27.10% and a net profit margin of 6.45%.

Dividend and Share Buyback Plan

In recent news, Interpublic announced a quarterly dividend which will be distributed on March 17, with a record date of March 3. The dividend payout is set at $0.33, translating to an annual dividend of $1.32, giving a dividend yield of 4.68%. Notably, the company's payout ratio stands at 72.13%.

Furthermore, Interpublic's board initiated a share buyback plan, authorized to repurchase up to $155 million of its outstanding shares, equating to about 1.6% of its total shares. This action often indicates the company believes its stock is undervalued.

Insider Trading Activities

On another note, CFO Ellen Tobi Johnson recently sold 21,427 shares of the company on March 3 at an average price of $26.82, amounting to about $574,672.14. Following this sale, she retains 143,373 shares, valued at approximately $3.85 million, reflecting a 13% decrease in her ownership of the stock. This transaction was reported to the SEC.

Institutional Investments in Interpublic

Several large investors have adjusted their holdings in Interpublic. Catalyst Capital Advisors LLC acquired a new position in the company during the third quarter, while Allworth Financial LP increased their holdings by 75.8% in the fourth quarter, now owning 1,113 shares worth around $31,000. Ashton Thomas Securities and OFI Invest Asset Management also made new acquisitions becoming investors in Interpublic. Approximately 98.43% of shares are held by institutional investors.

Company Profile

The Interpublic Group of Companies, Inc. provides a variety of advertising and marketing services globally. It operates through three key segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The Media segment encompasses media services, digital offerings, marketing technology, and strategic consulting services under various brand names including IPG Mediabrands, UM, and Acxiom.

Earnings, Forecast, IPG