Investors in The Interpublic Group of Companies, Inc. (NYSE:IPG) had a good week, as its shares rose 4.5% to close at US$30.98 following the release of its quarterly results. Revenues were US$2.3b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.57 were also better than expected, beating analyst predictions by 12%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Interpublic Group of Companies after the latest results.

View our latest analysis for Interpublic Group of Companies

Following last week's earnings report, Interpublic Group of Companies' eight analysts are forecasting 2024 revenues to be US$9.41b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 4.5% to US$2.62 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.43b and earnings per share (EPS) of US$2.64 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$33.96. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Interpublic Group of Companies at US$39.00 per share, while the most bearish prices it at US$28.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Interpublic Group of Companies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.1% growth on an annualised basis. This is compared to a historical growth rate of 3.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Interpublic Group of Companies.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Interpublic Group of Companies analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether Interpublic Group of Companies is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com