We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Interpublic Group Earnings Meet Estimates in Q3, Revenues Miss
Read MoreHide Full Article
The Interpublic Group of Companies, Inc. (IPG - Free Report) has reported third-quarter 2024 results, with earnings meeting the Zacks Consensus Estimate but revenues missing the same.
IPG’s adjusted earnings (excluding 65 cents from non-recurring items) of 70 cents per share met the Zacks Consensus Estimate and was flat with the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion missed the consensus estimate by 2.3% and declined 16.2% year over year. Total revenues of $2.6 billion fell 1.9% year over year and outpaced the Zacks Consensus Estimate of $2.3 billion.
IPG shares have gained 16.9% over the past year, whereas the industry it belongs to has declined 27.7% and the Zacks S&P 500 composite has risen 40.3%.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
The operating income in the quarter came in at $132.9 million, which decreased 64.7% from the year-ago quarter and was lower than our estimate of $392.8 million.
Adjusted EBITA was $385.8 million, decreasing 2.9% on a year-over-year basis and missing our estimate of $413.1 million. The adjusted EBITA margin on net revenues was 17.2%, gaining 260 basis points from the year-ago quarter. The figure beat our expectation of 16.4%.
Balance Sheet & Cash Flow of IPG
Interpublic Groupended the quarter with a cash and cash equivalent balance of $1.5 billion compared with $1.6 billion at the end of the previous quarter. Total debt was $2.9 billion compared with $3.2 billion in the preceding quarter.
In the reported quarter, IPG repurchased shares for $100 million at an average cost of $31.4 per share, including fees. The company paid out a common stock cash dividend of 33 cents per share to $123.2 million.
Interpublic Group's 2024 Guidance
IPG expects 2024 organic net revenues to grow 1% year over year. The adjusted EBITA margin is anticipated to be 16.6%.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2024 results.
OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and rose 9.1% from the year-ago quarter. Total revenues of $3.9 billion beat the consensus mark by 2.3% and grew 8.5% on a year-over-year basis.
ACN’s earnings (excluding 13 cents from non-recurring items) of $2.8 per share outpaced the Zacks Consensus Estimate marginally and increased 3% from the year-ago quarter. Total revenues of $16.4 billion beat the consensus estimate by a slight margin and gained 2.6% on a year-over-year basis.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Interpublic Group Earnings Meet Estimates in Q3, Revenues Miss
The Interpublic Group of Companies, Inc. (IPG - Free Report) has reported third-quarter 2024 results, with earnings meeting the Zacks Consensus Estimate but revenues missing the same.
See Zacks Earnings Calendar to stay ahead of market-making news.
IPG’s adjusted earnings (excluding 65 cents from non-recurring items) of 70 cents per share met the Zacks Consensus Estimate and was flat with the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion missed the consensus estimate by 2.3% and declined 16.2% year over year. Total revenues of $2.6 billion fell 1.9% year over year and outpaced the Zacks Consensus Estimate of $2.3 billion.
IPG shares have gained 16.9% over the past year, whereas the industry it belongs to has declined 27.7% and the Zacks S&P 500 composite has risen 40.3%.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
Interpublic Group of Companies, Inc. (The) price-eps-surprise | Interpublic Group of Companies, Inc. (The) Quote
Interpublic Group's Operating Results
The operating income in the quarter came in at $132.9 million, which decreased 64.7% from the year-ago quarter and was lower than our estimate of $392.8 million.
Adjusted EBITA was $385.8 million, decreasing 2.9% on a year-over-year basis and missing our estimate of $413.1 million. The adjusted EBITA margin on net revenues was 17.2%, gaining 260 basis points from the year-ago quarter. The figure beat our expectation of 16.4%.
Balance Sheet & Cash Flow of IPG
Interpublic Groupended the quarter with a cash and cash equivalent balance of $1.5 billion compared with $1.6 billion at the end of the previous quarter. Total debt was $2.9 billion compared with $3.2 billion in the preceding quarter.
In the reported quarter, IPG repurchased shares for $100 million at an average cost of $31.4 per share, including fees. The company paid out a common stock cash dividend of 33 cents per share to $123.2 million.
Interpublic Group's 2024 Guidance
IPG expects 2024 organic net revenues to grow 1% year over year. The adjusted EBITA margin is anticipated to be 16.6%.
Currently, Interpublic Groupcarries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of IPG's Peers
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2024 results.
OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and rose 9.1% from the year-ago quarter. Total revenues of $3.9 billion beat the consensus mark by 2.3% and grew 8.5% on a year-over-year basis.
Accenture plc (ACN - Free Report) posted better-than-expected fourth-quarter fiscal 2024 results.
ACN’s earnings (excluding 13 cents from non-recurring items) of $2.8 per share outpaced the Zacks Consensus Estimate marginally and increased 3% from the year-ago quarter. Total revenues of $16.4 billion beat the consensus estimate by a slight margin and gained 2.6% on a year-over-year basis.