Interpublic (IPG) Benefits From Its Digital Capabilities
The Interpublic Group of Companies, Inc. IPG gains through a diverse workforce, which gives it a competitive edge. IPG’s digital capabilities enable its growth endeavors. Partly due to these positives, shares of IPG have jumped 48%, outperforming its industry’s 23.1% rise.
Interpublic’s first-quarter 2023 earnings beat the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 5 cents from non-recurring items) came in at 38 cents per share, beating the consensus estimate by 22.6% but declining 19.2% on a year-over-year basis. Net revenues of $2.18 billion missed the consensus estimate by 0.9% and decreased 15.2% on a year-over-year basis. Total revenues of $2.52 billion decreased 1.9% year over year.
Current Situation of Interpublic
Interpublic benefits from the improvement of its digital capabilities which allows it to sustain growth in the dynamic industry. These digital capabilities include search, social, user experience, content creation and analytics. The company has been creating and maintaining direct relationships with its customers which adds to its growth strategy. IPG also provides tools and assists its clients in connecting with individual customers at scale.
Interpublic Group of Companies, Inc. (The) Price
Interpublic Group of Companies, Inc. (The) price | Interpublic Group of Companies, Inc. (The) Quote
The company has a diverse workforce which gives it a competitive advantage. IPG continues to attract, acquire and develop strategic, creative and digital talent from diverse backgrounds aimed at increasing organic growth and strengthening itself in international markets. The company has been following a disciplined acquisition strategy that focuses on high growth capacities and expanding its addressable market. In recent years, Interpublic has acquired agencies across the marketing spectrum including data, technology, e-commerce and healthcare communication firms, and agencies with full-service capacities. The company completed one acquisition in 2022, four acquisitions in 2020, one in 2019 and five in 2018.
The company’s efforts to return value to its shareholders are praiseworthy which instills shareholders’ confidence in the company. In 2022, 2021 and 2020, Interpublic paid $457.3 million, $427.7 million and $398.1 million in dividends, respectively.
Zacks Rank and Other Stocks to Consider
IPG currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Business Services sector can also consider the following stocks:
Green Dot GDOT: For second-quarter 2023, the Zacks Consensus Estimate of Green Dot’s revenues suggests a decline of 4.5% year over year to $339.2 million and the same for earnings indicates a 59.5% plunge to 30 cents per share. The company has an impressive earning surprise history, beating the consensus mark in all four trailing quarters, the average surprise being 37.3%.
GDOT has a Value score of A and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Maximus MMS: For second-quarter 2023, the Zacks Consensus Estimate of Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earning surprise history, beating the consensus mark in three instances and missing on one instance, the average surprise being 9.6%.
MMS has a VGM score of B and flaunts a Zacks Rank of 1 at present.
Rollins ROL: For second-quarter 2023, the Zacks Consensus Estimate of Rollins’ revenues suggests growth of 12.6% year over year to $803.6 million and the same for earnings indicates a 15% increase to 23 cents per share. The company has an impressive earning surprise history, beating the consensus mark in three of the four trailing quarters and missing on one instance, the average surprise being 5.53%.
ROL currently sports a Zacks Rank of 1.
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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
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