New York-based The Interpublic Group of Companies, Inc. (IPG - Free Report) is the third largest advertising company in the world. IPG has made a name for itself with its digital capabilities, diversified business model and geographic reach.
However, IPG forms an integral part of the communications industry, which is highly competitive in nature and is susceptible to market risks of losing contracts related to media purchases and production costs. With intensifying competition for ad dollars and adverse currency translation effects gradually shrinking margins, investors have been eagerly waiting for the company’s latest earnings report.
In the last four trailing quarters, IPG has managed to beat estimates on three occasions, registering a positive average earnings surprise of 43.6%.
Currently, IPG has a Zacks Rank #3 (Hold), but that could definitely change following latest second-quarter earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: IPG missed on earnings. The company reported adjusted EPS of 27 cents, which missed the Zacks Consensus Estimate of 34 cents.
Revenues: Revenues missed, as IPG reported revenues of $1.88 billion, compared with the Zacks Consensus Estimate of $1.96 billion.
Key Stats to Note: IPG achieved organic revenue growth of 0.4% in the reported quarter. During the second quarter, the company repurchased 2.5 million shares for $60 million. Also, it declared and paid cash dividend of 18 cents per share, for a total of $70.5 million.
Stock Price: IPG shares were relatively flat in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back our full write up on this IPG earnings report later!
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