Let’s dig into the relative performance of Interpublic Group (NYSE:IPG) and its peers as we unravel the now-completed Q1 advertising & marketing services earnings season.
The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.
The 7 advertising & marketing services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.8% below.
In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results.
With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE:IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services.
Interpublic Group reported revenues of $2.00 billion, down 8.5% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ organic revenue estimates.
Interpublic Group delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $24.
Is now the time to buy Interpublic Group? Access our full analysis of the earnings results here, it’s free.
Operating across the United States, Liberty Broadband (NASDAQ:LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Liberty Broadband reported revenues of $266 million, up 8.6% year on year, outperforming analysts’ expectations by 7.2%. The business had an incredible quarter.
Liberty Broadband pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $96.16.
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