The Interpublic Group of Companies, Inc
) is scheduled to report second-quarter 2014 results before the
opening bell on Jul 18. In the last reported quarter, the reported
loss of the company was narrower than the Zacks Consensus Estimate.
Let's see how things are shaping up for this announcement.
Factors to Consider
Jack Morton Worldwide - the leading brand experience agency of
Interpublic Group is expanding its business in Germany, South Korea
and building a new affiliation with Brazil-based agency, Mark Up.
With continuous expansion plans and strategic tie-ups, Interpublic
Group expects to strengthen its position with respect to new
business activities as well as opportunities from existing and new
clients. Also Jack Morton Worldwide acquired Genuine Interactive -
leading digital, mobile and social firm in Boston, which is
expected to effortlessly connect clients with consumers. This
acquisition is likely to boost Jack Morton Worldwide's digital
Additionally, Weber Shandwick, the public relations (PR) unit of
Interpublic Group, acquired Swedish creative PR agency Prime and
its business intelligence division United Minds. This acquisition
will help Interpublic Group to expand its footprint in the Nordics
and allow it to exploit Prime's award-winning creative talent. This
transaction is expected to drive innovation and improve client
The company's efforts in reducing costs, continuous margin
improvement, stronger balance sheet and better capital structure
will further enable it to likely post favorable results this
Our proven model shows that Interpublic Group is likely to beat
earnings since it has the appropriate combination of two key
: Expected Surprise Prediction or ESP, which represents the
difference between the Most Accurate Estimate and the Zacks
Consensus Estimate, is +4.00%. This indicates a likely earnings
Zacks Rank #3 (Hold): Stocks with a Zacks Ranks of #1, #2 and #3
have a significantly higher chance of beating earnings. The
Sell-rated stocks (#4 and #5) should never be considered while
going into an earnings announcement.
Interpublic Group's Zacks Rank #3 increases the predictive power
of its ESP. The combination of its Zacks Rank and Earnings ESP make
us confident of a positive earnings surprise in the soon-to-be
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows that they have the right combination of elements to post an
earnings beat in the future.
Arch Capital Group Ltd.
), with an Earnings ESP of +6.12% and a Zacks Rank #2 (Buy).
), with an Earnings ESP of +6.96% and a Zacks Rank #1.
Clayton Williams Energy, Inc
), with an Earnings ESP of +4.97% and a Zacks Rank #1.
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