The Interpublic Group of Companies, Inc. (IPG), founded in 1902 and headquartered in New York City, is a leading global provider of marketing solutions. With a market cap of $10.4 billion, IPG specializes in delivering innovative and data-driven advertising, communications, and media services that help brands connect with consumers worldwide. The company is set to release its fourth-quarter earnings on Thursday, Feb. 13.

Ahead of this event, analysts project Interpublic Group to report a profit of $1.16 per share, down 1.7% from $1.18 per share in the year-ago quarter. The company has consistently surpassed or matched Wall Street’s EPS estimates in its last four quarterly reports. In Q3, the company reported an EPS of $0.70, which met the consensus estimate.

For fiscal 2024, analysts expect the company to report an EPS of $2.81, down 6% from $2.99 in fiscal 2023.

Interpublic Group's shares have declined 11.5% over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 26.5% gain and the Communication Services Select Sector SPDR ETF’s (XLC) 33.5% returns over the same period.

Interpublic Group's shares have underperformed the broader market due to growing competition, shifting customer preferences, and challenges in digital marketing trends. Following its Q3 earnings release on Oct. 22, the shares declined 5.2%. Total revenues fell 1.9% year over year to $2.63 billion. Adjusted EBITA, excluding restructuring charges, decreased to $385.8 million from $397.2 million in Q3 2023, highlighting operational pressures.

Analysts' consensus view on Interpublic Group’s stock is cautious, with a "Hold" rating overall. Among eight analysts covering the stock, two recommend a "Strong Buy," five suggest "Hold," and one indicates a “Strong Sell.”

The average analyst price target for IPG is $32.88, indicating an 18.1% potential upside from the current levels.