Over the last six months, Interpublic shares have grown 1.2% against the industry and the Zacks S & P 500 composite decline by 10% and 4.2%, respectively.
Let's see how to prepare the announcement.
Top line to decrease from one year to the next
The Zacks Consensus estimate for the fourth quarter 2018 revenues is set at $ 2.32 billion, which indicates a 0.8% decrease from one year to the next. Revenues are expected to be affected by net divestments, which should be partially offset by stronger organic growth.
The Zacks consensual estimate indicates organic growth of 4% in the third quarter of 2007, compared to 3.3% in the fourth quarter of 2017.
The company is expected to experience organic growth both in the United States and internationally. In the United States, organic growth should be driven by the strength of specialized agencies in the media, advertising, public relations and digital. Strong revenues from Latin America, Asia Pacific, Europe and the UK are expected to drive organic growth in international markets.
In the third quarter of 2018, the company's sales increased by 3.4% compared to the previous year, thanks to organic growth of 5.4%. The company recorded organic growth in its net sales of 5% in the US and 6% in international markets in the third quarter. However, foreign exchange and net disposals had a negative impact of 1.3%.
Zacks' consensus estimate for earnings per share (EPS) quarter to report is set at 81 cents, indicating growth from one year to the other of 2.5%. In the third quarter of 2018, adjusted earnings of 48 cents per share rose 29.7% from one year to the next.
Interpublic's digital capabilities, diverse business model and geographic reach provide a distinctive competitive advantage. It continues to seek strategic investments and buyouts to grow in high-growth regions and key global markets.
What our model says
Please note that, according to the Zacks model, a company with a rank 1 (strong purchase), 2 (purchase) or 3 (standby) ranking Zacks is likely to exceed the estimates if it also has a ESP of positive profit. It is better to avoid tier 4 (sale) or 5 (strong sell) Zacks stocks, especially when the company sees revisions of negative estimates. You can discover the best stock to buy or sell before publishing with our earnings ESP filter.
Interpublic has a profit ESP of 0.00% and a rank of Zacks n ° 4.
Stocks to consider
Here are some of the actions in Zacks' broader business services sector that investors can take into account, as our model shows that they have the right mix of elements to beat the profits:
Copart (CPRT – Free Report) has a profit ESP of + 1.63% and a ranking of Zacks No. 2. The company is expected to report its second quarter results of fiscal year 2019 on February 25th. You can see the complete list of current stocks of Zacks # 1.
ICF International (ICFI – Free Report) has a profit EPS of + 0.41% and a rank of Zacks No. 3. The company is expected to release its fourth quarter results 2018 on February 26th.
IQVIA Holdings (IQV – Free Report) has a profit EPS of + 0.37% and a rank of Zacks No. 3. The company is expected to report its fourth quarter results 2018 on February 14th.
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