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Interpublic Group (IPG) Q3 Earnings & Revenues Beat Estimates
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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
Shares of IPG have plunged 24.9% in the past year compared with a 37.2% decrease of the industry it belongs to.
Image Source: Zacks Investment Research
Operating Results
Operating income in the quarter came in at $341.8 million, down 2.8% from the prior-year quarter’s levels. Operating margin on net revenues decreased to 14.9% from 15.5% in the year-ago quarter. Operating margin on total revenues also decreased to 13% from 13.8% in the year-ago quarter.
Adjusted EBITA came in at $362 million, down 2.9% from the prior-year quarter’s level. Adjusted EBITA margin on net revenues decreased to 15.8% from 16.5% in the year-ago quarter. Adjusted EBITA margin on total revenues fell to 13.7% from 14.7% in the year-ago quarter. Total operating expenses of $2.3 billion decreased 4.8% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2022, Interpublic had cash and cash equivalents of $1.77 billion compared with $1.98 billion at the end of the prior quarter. Total debt was $2.96 billion compared with $2.95 billion at the end of the prior quarter.
During the September quarter of 2022, IPG repurchased 2.6 million shares of its common stock at an aggregate cost of $73.7 million and an average price of $31.1 per share, including fees. In the third quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for $113 million.
Organic growth for the full year is expected to be 7%.
Adjusted EBITA margin is expected to be 16.6%.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
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Interpublic Group (IPG) Q3 Earnings & Revenues Beat Estimates
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
Shares of IPG have plunged 24.9% in the past year compared with a 37.2% decrease of the industry it belongs to.
Image Source: Zacks Investment Research
Operating Results
Operating income in the quarter came in at $341.8 million, down 2.8% from the prior-year quarter’s levels. Operating margin on net revenues decreased to 14.9% from 15.5% in the year-ago quarter. Operating margin on total revenues also decreased to 13% from 13.8% in the year-ago quarter.
Adjusted EBITA came in at $362 million, down 2.9% from the prior-year quarter’s level. Adjusted EBITA margin on net revenues decreased to 15.8% from 16.5% in the year-ago quarter. Adjusted EBITA margin on total revenues fell to 13.7% from 14.7% in the year-ago quarter. Total operating expenses of $2.3 billion decreased 4.8% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2022, Interpublic had cash and cash equivalents of $1.77 billion compared with $1.98 billion at the end of the prior quarter. Total debt was $2.96 billion compared with $2.95 billion at the end of the prior quarter.
During the September quarter of 2022, IPG repurchased 2.6 million shares of its common stock at an aggregate cost of $73.7 million and an average price of $31.1 per share, including fees. In the third quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for $113 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.
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
2022 Guidance
Organic growth for the full year is expected to be 7%.
Adjusted EBITA margin is expected to be 16.6%.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.