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| Company Name | Symbol | %Change |
|---|---|---|
| ALLIANCE FIB | AFOP | 9.31% |
| SONIC FOUNDR | SOFO | 7.77% |
| TRI TECH HOL | TRIT | 6.62% |
| A M R CP | AAMRQ | 4.52% |
| FLOWERS FOOD | FLO | 4.31% |
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Interpublic Group of Companies Inc. ( IPG - Analyst Report ) reported earnings of 22 cents per diluted share for the second quarter, up from 19 cents in the second quarter of 2011. The result surpassed the Zacks Consensus Estimate by a penny.
Revenue: Revenue inched lower year over year to $1715.7 million from $1740.7 million in 2Q11, with a 3.7% sales decline in the U.S. However, a 1.6% growth was registered internationally. Revenue in the quarter missed the Zacks Consensus Estimate of $1,760 million.
Organic revenue increased 0.8% during the quarter, which was based on high growth in international markets, marketing services and digital capabilities.
Margin: Operating income was recorded at $176.4 million, compared with $174 million in the year-ago period. Operating expenses in the quarter inched up 1.7% to $1,539.3 million. This included an increase of 0.6% in salaries and related expenses and 4.4% in office and general expenses. Operating margin in the quarter was 10.3%, compared with 10% in the year-ago quarter.
Balance Sheet: Exiting the second quarter, the company’s cash and cash equivalents and marketable securities amounted to $1.51 billion, compared with $1.59 billion in the previous quarter. Total debt was recorded at $1.63 billion, compared with $1.62 billion in the preceding quarter.
Share Repurchase Program/ Dividend: During the second quarter of 2012, the company repurchased 6.0 million shares at an aggregate cost of $65.6 million and an average price of $10.92 per share. The company also declared and paid a common stock cash dividend of $0.06 per share, for a total of $26.1 million.
The company is the third largest advertising company in the world, offering a range of advertising and marketing communication services. The company competes with other industry players, such as Omnicom Group Inc. ( OMC - Analyst Report ) , Publicis Groupe SA ( PUBGY ) and WPP plc ( WPPGY - Analyst Report ) .
We currently maintain a long-term Neutral recommendation on the stock. The company holds a Zacks #3 Rank, which translates into a short-term (1-3 months) Hold rating.
Read the full reports :
Analyst Report on IPG
Analyst Report on OMC
Analyst Report on WPPGY
on PUBGY