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Interpublic Group (IPG) Tops Q1 Earnings & Revenue Estimates

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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected first-quarter 2021 results.

Adjusted earnings (excluding 22 cents from non-recurring items) of 45 cents per share beat the Zacks Consensus Estimate by more than 100%. Moreover, the bottom-line also surged more than 100% on a year-over-year basis.

Net revenues of $2.03 billion beat the consensus estimate by 2.8% and increased 2.8% on a year-over-year basis. The upside was caused by organic net revenues increase of 1.9% and foreign currency translation was positive 1.5%. Total revenues of $2.26 billion declined 4.4% year over year.

So far this year, shares of Interpublic have gained 65.7% compared with 50.1% increase of the industry it belongs to.

 

Operating Results

Operating income in first-quarter 2021 came in at $243 million compared with $75.9 million in the prior-year quarter. Operating margin on net revenues surged to 12% from 3.9% in the year-ago quarter. Operating margin on total revenues also increased to 10.8% from 3.2% in the year-ago quarter.

Adjusted EBITA came in at $265.9 million, compared with $97.2 million at the end of the prior-year quarter. Adjusted EBITA margin on net revenues inched up to 13.1% from 4.9% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 11.8% from 4.11% in the year-ago quarter.
Total operating expenses of $2 billion declined 11.8% year over year.

Balance Sheet

As of Mar 31, 2020, Interpublic had cash and cash equivalents of $2.02 billion compared with $2.51 billion at the end of the prior quarter. Total debt was $3.45 billion compared with $3.47 billion at the end of the prior quarter.
During the quarter, the company paid out a cash dividend of 27 cents per share, amounting to $109.1 million.

Currently, Interpublic carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

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