The Interpublic Group of Companies, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Interpublic Group of Companies, Inc. (NYSE:IPG) will unveil its latest earnings on Thursday, July 28, 2011. The Interpublic Group of Companies, Inc. is an advertising and marketing services company that specializes in consumer advertising, interactive marketing and media planning. Omnicom Group Inc. Earnings Cheat Sheet: Profit Increases Again>>

The Interpublic Group of Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 20 cents per share, a rise of 33.3% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of 65 cents per share, a rise of 32.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting a loss of 10 cents per share against a mean estimate of net loss of 11 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.75 billion in revenue this quarter, a rise of 8% from the year ago quarter. Analysts are forecasting total revenue of $7 billion for the year, a rise of 7.2% from last year’s revenue of $6.53 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 10% to $1.47 billion in first quarter. The figure rose 11.7% in the fourth quarter of the last fiscal year from the year earlier, climbed 9.4% in the third quarter of the last fiscal year from the year-ago quarter and 9.7% in the second quarter of the last fiscal year.

Interpublic Group of Companies’ loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $45.2 million in the first quarter, a profit of $197.9 million in the fourth quarter of the last fiscal year, a profit of $45.3 million in the third of the last fiscal year and a profit of $82.5 million in the second quarter of the last fiscal year.

Competitors to Watch: Omnicom Group Inc. (NYSE:OMC), MDC Partners Inc. (NASDAQ:MDCA), Lamar Advertising Company (NASDAQ:LAMR), Charm Communications Inc (NASDAQ:CHRM), Focus Media Holding Ltd. (NASDAQ:FMCN), Inuvo, Inc. (AMEX:INUV), National CineMedia, Inc. (NASDAQ:NCMI), interCLICK Inc (NASDAQ:ICLK), and ValueClick, Inc. (NASDAQ:VCLK).

Stock Price Performance: During June 23, 2011 to July 22, 2011, the stock price had risen $1.05 (9%) from $11.61 to $12.66. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 5, 2011 when shares rose for seven-straight days, rising 11.3% (+$1.29) over that span. It saw one of its worst periods between April 4, 2011 and April 12, 2011 when shares fell for seven-straight days, falling 5.5% (-69 cents) over that span. Shares are up $2.14 (+20.3%) year to date.

(Source: Xignite Financials)

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