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Interpublic (IPG) Banking on Investments, Debt Woe Stays
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The Interpublic Group of Companies, Inc. ((IPG - Free Report) ) is currently benefiting from prudent investments in talent, technology and acquisitions.
The company recently reported impressive first-quarter 2021 results, wherein both its earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings of 45 cents per share beat the consensus mark as well as the year-ago figure by more than 100%. Net revenues of $2.03 billion beat the consensus mark by 2.8% and also increased 2.8% on a year-over-year basis.
Notably, the company’s shares have gained a whopping 101.6% over the past year, significantly outperforming the 73.6% rally of the industry it belongs to.
How is Interpublic Doing?
Interpublic’s increasingly diverse workforce gives the company a key competitive edge. The company continues to attract, acquire and develop strategic, creative and digital talent from diverse backgrounds with a view to increase organic growth and strengthen its foothold in international markets.
The company continues to invest in technology and internationalize its digital specialist agencies to keep pace with the rapidly evolving media landscape. It has been enhancing its digital capabilities like search, social, user experience, content creation, analytics and mobile across its portfolio in order to maintain growth in the dynamic sector.
To develop and maintain direct consumer relationships is one of Interpublic’s key growth strategies. For this, the company provides tools and assists its clients in connecting with individual customers at scale. Further, it brings together data and technology talent, along with media experts, to develop software that enhances clients' marketing.
Interpublic has a disciplined acquisition strategy focused on high-growth capacities and geographies. It has been continuously acquiring and investing in companies globally, in order to expand its product portfolio and adjust itself with the rapidly changing marketing services and media prospects. In recent years, Interpublic has acquired agencies across the marketing spectrum including data, technology, e-commerce and healthcare communication firms, and agencies with full-service capacities. The company completed four acquisitions in 2020, one in 2019 and five 2018.
Commitment to shareholder returns makes the Interpublic stock a reliable investment to compound wealth over the long term. In 2020 and 2019, Interpublic paid $398.1 million and $363.1 million in dividends, respectively. In 2018 and 2017, the company paid $322.1 million and $280.3 million in dividend payments and repurchased shares worth $117.1 million and $300.1 million, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
Notably, cash and cash equivalent balance of $2 billion at the end of the first-quarter 2021 was well below the total debt level of $3.45 billion, underscoring that the company doesn’t have enough cash to meet this debt burden.
The long-term expected earnings per share (three to five years) growth rate for Equifax, Charles River and TransUnion is 14%, 15.5% and 20.9%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Interpublic (IPG) Banking on Investments, Debt Woe Stays
The Interpublic Group of Companies, Inc. ((IPG - Free Report) ) is currently benefiting from prudent investments in talent, technology and acquisitions.
The company recently reported impressive first-quarter 2021 results, wherein both its earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings of 45 cents per share beat the consensus mark as well as the year-ago figure by more than 100%. Net revenues of $2.03 billion beat the consensus mark by 2.8% and also increased 2.8% on a year-over-year basis.
Notably, the company’s shares have gained a whopping 101.6% over the past year, significantly outperforming the 73.6% rally of the industry it belongs to.
How is Interpublic Doing?
Interpublic’s increasingly diverse workforce gives the company a key competitive edge. The company continues to attract, acquire and develop strategic, creative and digital talent from diverse backgrounds with a view to increase organic growth and strengthen its foothold in international markets.
The company continues to invest in technology and internationalize its digital specialist agencies to keep pace with the rapidly evolving media landscape. It has been enhancing its digital capabilities like search, social, user experience, content creation, analytics and mobile across its portfolio in order to maintain growth in the dynamic sector.
To develop and maintain direct consumer relationships is one of Interpublic’s key growth strategies. For this, the company provides tools and assists its clients in connecting with individual customers at scale. Further, it brings together data and technology talent, along with media experts, to develop software that enhances clients' marketing.
Interpublic has a disciplined acquisition strategy focused on high-growth capacities and geographies. It has been continuously acquiring and investing in companies globally, in order to expand its product portfolio and adjust itself with the rapidly changing marketing services and media prospects. In recent years, Interpublic has acquired agencies across the marketing spectrum including data, technology, e-commerce and healthcare communication firms, and agencies with full-service capacities. The company completed four acquisitions in 2020, one in 2019 and five 2018.
Commitment to shareholder returns makes the Interpublic stock a reliable investment to compound wealth over the long term. In 2020 and 2019, Interpublic paid $398.1 million and $363.1 million in dividends, respectively. In 2018 and 2017, the company paid $322.1 million and $280.3 million in dividend payments and repurchased shares worth $117.1 million and $300.1 million, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
Notably, cash and cash equivalent balance of $2 billion at the end of the first-quarter 2021 was well below the total debt level of $3.45 billion, underscoring that the company doesn’t have enough cash to meet this debt burden.
Zacks Rank and Stocks to Consider
Interpublic currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Equifax (EFX - Free Report) , Charles River Associates (CRAI - Free Report) and TransUnion ((TRU - Free Report) ), each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Equifax, Charles River and TransUnion is 14%, 15.5% and 20.9%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>