Back to top

Image: Bigstock

Interpublic Group (IPG) Comfortably Beats Q1 Earnings

Read MoreHide Full Article

New York-based The Interpublic Group of Companies, Inc. (IPG - Free Report) is the third largest advertising company in the world. IPG has made a name for itself with its digital capabilities, diversified business model and geographic reach.

However, IPG forms an integral part of the communications industry, which is highly competitive in nature and is susceptible to market risks of losing contracts related to media purchases and production costs. With intensifying competition for ad dollars and adverse currency translation effects gradually shrinking margins, investors have been eagerly waiting for the company’s latest earnings report.

In the last four trailing quarters, IPG has managed to beat estimates on three occasions, registering a positive average earnings surprise of 31.09%.

Currently, IPG has a Zacks Rank #3 (Hold), but that could definitely change following latest first-quarter earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: IPG earnings beat. The company reported EPS of 5 cents, which beat the Zacks Consensus Estimate of 2 cents.

Revenues: Revenues missed, as IPG reported revenues of $1,753.9 million, compared with the Zacks Consensus Estimate of $1,761 million.

Key Stats to Note: IPG achieved organic revenue growth of 2.7% in the reported quarter, while operating income increased 29% year over year. During the quarter, the company repurchased 2.3 million shares for $55 million.

Stock Price: IPG shares were inactive in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back our full write up on this IPG earnings report later!

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Interpublic Group of Companies, Inc. (The) (IPG) - free report >>

Published in