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Interpublic Group (IPG) Q2 Earnings & Revenues Beat Estimates
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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected second-quarter 2022 results.
Adjusted earnings (excluding 5 cents from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 8.6%. However, the bottom line dropped 10% on a year-over-year basis.
Net revenues of $2.38 billion beat the consensus estimate by 3.1% but declined 5.3% on a year-over-year basis. Total revenues of $2.74 billion increased 9% year over year.
Interpublic Group of Companies, Inc. The Price, Consensus and EPS Surprise
Operating income in the quarter came in at $349.1 million, down 9.2% from the prior-year quarter’s levels. Operating margin on net revenues decreased to 14.7% from 16.9% in the year-ago quarter. Operating margin on total revenues also decreased to 12.8% from 15.3% in the year-ago quarter.
Adjusted EBITA came in at $370.2 million, down 8.8% from the prior-year quarter’s level. Adjusted EBITA margin on net revenues decreased to 15.6% from 17.9% in the year-ago quarter. Adjusted EBITA margin on total revenues fell to 13.5% from 16.2% in the year-ago quarter. Total operating expenses of $2.39 billion decreased 12.3% year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Interpublic had cash and cash equivalents of $1.98 billion compared with $2.40 billion at the end of the prior quarter. Total debt was $2.95 billion compared with $2.97 billion at the end of the prior quarter. During the June quarter of 2022, IPG repurchased 2.7 million shares of its common stock at an aggregate cost of $84.8 million and an average price of $32.84 per share, including fees. In the second quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for $113.8 million.
Currently, Interpublic carries a Zacks Rank #5 (Strong Sell).
Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report second-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.
CCRN's shares have gained 89.7% in the past year. Cross Country Healthcare has a long-term earnings growth of 6.9%.
Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.
WM’s shares have gained 5.4% in the past year. Waste Management has a long-term earnings growth of 10.9%.
Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.
RSG’s shares have gained 12.4% in the past year. Republic Services has a long-term earnings growth of 10.5%.
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Interpublic Group (IPG) Q2 Earnings & Revenues Beat Estimates
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected second-quarter 2022 results.
Adjusted earnings (excluding 5 cents from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 8.6%. However, the bottom line dropped 10% on a year-over-year basis.
Net revenues of $2.38 billion beat the consensus estimate by 3.1% but declined 5.3% on a year-over-year basis. Total revenues of $2.74 billion increased 9% year over year.
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
Operating Results
Operating income in the quarter came in at $349.1 million, down 9.2% from the prior-year quarter’s levels. Operating margin on net revenues decreased to 14.7% from 16.9% in the year-ago quarter. Operating margin on total revenues also decreased to 12.8% from 15.3% in the year-ago quarter.
Adjusted EBITA came in at $370.2 million, down 8.8% from the prior-year quarter’s level. Adjusted EBITA margin on net revenues decreased to 15.6% from 17.9% in the year-ago quarter. Adjusted EBITA margin on total revenues fell to 13.5% from 16.2% in the year-ago quarter. Total operating expenses of $2.39 billion decreased 12.3% year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Interpublic had cash and cash equivalents of $1.98 billion compared with $2.40 billion at the end of the prior quarter. Total debt was $2.95 billion compared with $2.97 billion at the end of the prior quarter.
During the June quarter of 2022, IPG repurchased 2.7 million shares of its common stock at an aggregate cost of $84.8 million and an average price of $32.84 per share, including fees. In the second quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for $113.8 million.
Currently, Interpublic carries a Zacks Rank #5 (Strong Sell).
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 can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report second-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.
CCRN's shares have gained 89.7% in the past year. Cross Country Healthcare has a long-term earnings growth of 6.9%.
Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.
WM’s shares have gained 5.4% in the past year. Waste Management has a long-term earnings growth of 10.9%.
Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.
RSG’s shares have gained 12.4% in the past year. Republic Services has a long-term earnings growth of 10.5%.