IPG's third-quarter 2024 total revenues decline year over year. Earnings remain flat with the year-ago quarter.
The Interpublic Group of Companies, Inc. (NYSE:IPG ) Q3 2024 Earnings Conference Call October 22, 2024 8:30 AM ET Company Participants Jerry Leshne - SVP, IR Philippe Krakowsky - CEO Ellen Johnson - CFO Conference Call Participants Adrien de Saint Hilaire - Bank of America David Karnovsky - J.P. Morgan Chase Tim Nollen - Macquarie Research Steven Cahall - Wells Fargo Michael Nathanson - MoffettNathanson Craig Huber - Huber Research Operator Good morning and welcome to the Interpublic Group Third Quarter 2024 Conference Call.
While the top- and bottom-line numbers for Interpublic (IPG) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Interpublic Group (IPG) came out with quarterly earnings of $0.70 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.70 per share a year ago.
IPG's third-quarter 2024 revenues are anticipated to have declined due to deteriorations in the SC&E and MD&E segments.
Interpublic Group of Companies showed modest topline growth and operating profit, with strong performance in North America and Europe. US market, IPG's largest, saw 1.3% organic growth, while international markets grew 2.6% organically, driven by strong performance in Europe and the UK. Guided growth remains flat, with tech expected to rebound by year-end, but a loss in some healthcare business offsetting those incremental benefits.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Interpublic (IPG), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.
Interpublic Group's stock is appealing to dividend-seeking investors and it leverages a diverse workforce for organic growth.
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
The Zacks Advertising and Marketing industry's prospects look good on healthy service activities. IPG, NEXN and PUBGY are likely to ride on the digital marketing surge and client-centric strategies.
Stocks offer better total return potential over the longer term; IPG and CASY are two undercovered, dividend stocks with solid fundamentals and growth potential. IPG's strong fundamentals, low debt, and share buybacks make it a compelling long-term investment for dividend investors. CASY's expansion, customer loyalty, and robust financials position it for continued growth and attractive returns.
IPG delivers positive free cash flow and reports stock repurchase programs to enhance stock value. Successful acquisitions and investments in technology position IPG for further growth. Valuation models suggest a fair price between $56 and $43 per share, indicating the company may be undervalued.