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Interpublic Group (IPG) Q1 Earnings Beat Estimates, Rise Y/Y
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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected first-quarter 2022 results.
Adjusted earnings (excluding 7 cents from non-recurring items) of 47 cents per share beat the Zacks Consensus Estimate by 17.5%. Moreover, the bottom line rose 4.4% on a year-over-year basis.
Net revenues of $2.23 billion beat the consensus estimate by 3.3% but declined 1.3% on a year-over-year basis. Total revenues of $2.57 billion increased 13.8% year over year.
In the past year, shares of Interpublic have gained 6.6%.
Image Source: Zacks Investment Research
Operating Results
Operating income in the quarter came in at $245.7 million, up 1% from the prior-year quarter’s levels. Operating margin on net revenues decreased to 11% from 12% in the year-ago quarter. Operating margin on total revenues also decreased to 9.6% from 10.8% in the year-ago quarter.
Interpublic Group of Companies, Inc. The Price, Consensus and EPS Surprise
Adjusted EBITA came in at $267 million, up marginally from the prior-year quarter’s level. Adjusted EBITA margin on net revenues decreased to 12% from 13% in the year-ago quarter. Adjusted EBITA margin on total revenues fell to 10.4% from 11% in the year-ago quarter. Total operating expenses of $2.32 billion decreased 15.3% year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Interpublic had cash and cash equivalents of $2.40 billion compared with $3.27 billion at the end of the prior quarter. Total debt was $2.97 billion compared with $2.96 billion at the end of the prior quarter. During the March quarter of 2022, IPG repurchased 1.8 million shares of its common stock at an aggregate cost of $63.1 million and an average price of $35.21 per share, including fees. During the first quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for a total of $118.3 million.
ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.
Omnicom reported impressive first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis.
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Interpublic Group (IPG) Q1 Earnings Beat Estimates, Rise Y/Y
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected first-quarter 2022 results.
Adjusted earnings (excluding 7 cents from non-recurring items) of 47 cents per share beat the Zacks Consensus Estimate by 17.5%. Moreover, the bottom line rose 4.4% on a year-over-year basis.
Net revenues of $2.23 billion beat the consensus estimate by 3.3% but declined 1.3% on a year-over-year basis. Total revenues of $2.57 billion increased 13.8% year over year.
In the past year, shares of Interpublic have gained 6.6%.
Image Source: Zacks Investment Research
Operating Results
Operating income in the quarter came in at $245.7 million, up 1% from the prior-year quarter’s levels. Operating margin on net revenues decreased to 11% from 12% in the year-ago quarter. Operating margin on total revenues also decreased to 9.6% from 10.8% in the year-ago quarter.
Interpublic Group of Companies, Inc. The Price, Consensus and EPS Surprise
Interpublic Group of Companies, Inc. The price-consensus-eps-surprise-chart | Interpublic Group of Companies, Inc. The Quote
Adjusted EBITA came in at $267 million, up marginally from the prior-year quarter’s level. Adjusted EBITA margin on net revenues decreased to 12% from 13% in the year-ago quarter. Adjusted EBITA margin on total revenues fell to 10.4% from 11% in the year-ago quarter. Total operating expenses of $2.32 billion decreased 15.3% year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Interpublic had cash and cash equivalents of $2.40 billion compared with $3.27 billion at the end of the prior quarter. Total debt was $2.97 billion compared with $2.96 billion at the end of the prior quarter.
During the March quarter of 2022, IPG repurchased 1.8 million shares of its common stock at an aggregate cost of $63.1 million and an average price of $35.21 per share, including fees. During the first quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for a total of $118.3 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.
Earnings Snapshots
Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.
ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.
Omnicom reported impressive first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis.