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The Interpublic Group of Companies, Inc. (IPG - Free Report) has reported mixed first-quarter 2024 results, wherein earnings met the Zacks Consensus Estimate, whereas revenues beat the same.
IPG’s adjusted earnings (excluding 7 cents from non-recurring items) of 36 cents per share met the Zacks Consensus Estimate but decreased 5.3% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.2 billion surpassed the consensus estimate marginally but decreased 13.4% year over year. Total revenues of $2.5 billion declined 1% and met our estimate.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
The operating income in the quarter came in at $184.2 million, which decreased 2.2% from the year-ago quarter and was lower than our expected $245.9 million. The operating margin on net revenues increased to 11.3% from 8.6% in the year-ago quarter and met our estimate.
Adjusted EBITA was $204.9 million, decreasing 2.1% from the year-ago quarter but missing our estimate of $265.4 million. The adjusted EBITA margin on net revenues lagged our anticipated 12.2%, decreasing to 9.4% from 9.6% in the year-ago quarter.
Balance Sheet & Cash Flow
Interpublic ended the quarter with a cash and cash equivalents balance of $1.9 billion compared with $2.4 billion at the end of the previous quarter. Total debt was $3.2 billion, flat with the previous quarter.
IPG repurchased 1.9 million shares at an average cost of $32.4 per share, totaling $62.4 million, including fees, in the quarter. The company paid out a common stock cash dividend of 33 cents per share to $126.6 million.
2024 Guidance
The company expects organic net revenues to grow 1-2%. The adjusted EBITA margin is anticipated to be 16.6%.
Currently, Interpublic carries a Zacks Rank #4 (Sell).
FI’s adjusted earnings per share (excluding 65 cents from non-recurring items) of $1.9 beat the consensus mark by 6.2% and increased 19% year over year. Adjusted revenues of $4.5 billion missed the consensus estimate by a slight margin and decreased slightly on a year-over-year basis.
MAN’s quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year on a reported basis and 5% on a constant-currency basis.
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Interpublic (IPG) Q1 Earnings Meet Estimates, Decline Y/Y
The Interpublic Group of Companies, Inc. (IPG - Free Report) has reported mixed first-quarter 2024 results, wherein earnings met the Zacks Consensus Estimate, whereas revenues beat the same.
IPG’s adjusted earnings (excluding 7 cents from non-recurring items) of 36 cents per share met the Zacks Consensus Estimate but decreased 5.3% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.2 billion surpassed the consensus estimate marginally but decreased 13.4% year over year. Total revenues of $2.5 billion declined 1% and met our estimate.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
Interpublic Group of Companies, Inc. (The) price-eps-surprise | Interpublic Group of Companies, Inc. (The) Quote
Operating Results
The operating income in the quarter came in at $184.2 million, which decreased 2.2% from the year-ago quarter and was lower than our expected $245.9 million. The operating margin on net revenues increased to 11.3% from 8.6% in the year-ago quarter and met our estimate.
Adjusted EBITA was $204.9 million, decreasing 2.1% from the year-ago quarter but missing our estimate of $265.4 million. The adjusted EBITA margin on net revenues lagged our anticipated 12.2%, decreasing to 9.4% from 9.6% in the year-ago quarter.
Balance Sheet & Cash Flow
Interpublic ended the quarter with a cash and cash equivalents balance of $1.9 billion compared with $2.4 billion at the end of the previous quarter. Total debt was $3.2 billion, flat with the previous quarter.
IPG repurchased 1.9 million shares at an average cost of $32.4 per share, totaling $62.4 million, including fees, in the quarter. The company paid out a common stock cash dividend of 33 cents per share to $126.6 million.
2024 Guidance
The company expects organic net revenues to grow 1-2%. The adjusted EBITA margin is anticipated to be 16.6%.
Currently, Interpublic carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2024 results.
FI’s adjusted earnings per share (excluding 65 cents from non-recurring items) of $1.9 beat the consensus mark by 6.2% and increased 19% year over year. Adjusted revenues of $4.5 billion missed the consensus estimate by a slight margin and decreased slightly on a year-over-year basis.
ManpowerGroup Inc. (MAN - Free Report) reported mixed first-quarter 2024 results.
MAN’s quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year on a reported basis and 5% on a constant-currency basis.