The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2020 results.
Adjusted earnings of 53 cents per share beat the Zacks Consensus Estimate by 43.2% and improved 8.2% on a year-over-year basis.
Net revenues of $1.95 billion beat the consensus estimate by 3.4% but decreased on a year-over-year basis due to organic net revenue decrease of 3.7%, negative impact of 0.3% due to foreign-currency movement and 1.2% due to dispositions. Total revenues of $2.13 billion declined 12.7% year over year.
So far this year, shares of Interpublic have lost 22% compared with 37.9% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite rose 7%.
Let’s check out the numbers in detail.
Operating Results
Operating income in third-quarter 2020 came in at $248.6 million compared with $280.3 million in the prior-year quarter. Operating margin on net revenues decreased to 12.7% from 13.6% in the year-ago quarter. Operating margin on total revenues rose to 11.7% from 11.5% in the year-ago quarter.
Adjusted EBITA came in at $269.9 million, compared with $302 million at the end of the prior-year quarter. Adjusted EBITA margin on net revenues declined to 13.8% from 14.7% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 12.7% from 12.4% in the year-ago quarter.
Total operating expenses of $1.88 billion declined 13% year over year.
Balance Sheet
As of Sep 30, 2020, Interpublic had cash and cash equivalents of $1.63 billion, compared with $1.09 billion at the end of the prior quarter. Total debt was $3.96 billion compared with $3.97 billion at the end of the prior quarter.
Dividend Payout
During the reported quarter, the company declared and paid out a cash dividend of 25.5 cents per share, amounting to $99.4 million.
Currently, Interpublic carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2020 earnings of key players like S&P Global (SPGI - Free Report) , Fiserv and Waste Connections (WCN - Free Report) . While S&P Global and Fiserv are slated to release their results on Oct 27, Waste Connections is scheduled to release the same on Oct 28.
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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2020 results.
Adjusted earnings of 53 cents per share beat the Zacks Consensus Estimate by 43.2% and improved 8.2% on a year-over-year basis.
Net revenues of $1.95 billion beat the consensus estimate by 3.4% but decreased on a year-over-year basis due to organic net revenue decrease of 3.7%, negative impact of 0.3% due to foreign-currency movement and 1.2% due to dispositions. Total revenues of $2.13 billion declined 12.7% year over year.
So far this year, shares of Interpublic have lost 22% compared with 37.9% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite rose 7%.
Let’s check out the numbers in detail.
Operating Results
Operating income in third-quarter 2020 came in at $248.6 million compared with $280.3 million in the prior-year quarter. Operating margin on net revenues decreased to 12.7% from 13.6% in the year-ago quarter. Operating margin on total revenues rose to 11.7% from 11.5% in the year-ago quarter.
Adjusted EBITA came in at $269.9 million, compared with $302 million at the end of the prior-year quarter. Adjusted EBITA margin on net revenues declined to 13.8% from 14.7% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 12.7% from 12.4% in the year-ago quarter.
Total operating expenses of $1.88 billion declined 13% year over year.
Balance Sheet
As of Sep 30, 2020, Interpublic had cash and cash equivalents of $1.63 billion, compared with $1.09 billion at the end of the prior quarter. Total debt was $3.96 billion compared with $3.97 billion at the end of the prior quarter.
Dividend Payout
During the reported quarter, the company declared and paid out a cash dividend of 25.5 cents per share, amounting to $99.4 million.
Currently, Interpublic carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2020 earnings of key players like S&P Global (SPGI - Free Report) , Fiserv and Waste Connections (WCN - Free Report) . While S&P Global and Fiserv are slated to release their results on Oct 27, Waste Connections is scheduled to release the same on Oct 28.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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