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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported solid first-quarter 2020 results wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings of 11 cents per share beat the consensus mark by 22.2% but remained flat on a year-over-year basis. Net revenues of $1.97 billion beat the consensus estimate by 1.6% but decreased 16.5% on a year-over-year basis. The top line benefited from organic revenue growth of 0.3%, which was, however, partially offset by a negative impact of 1% due to foreign currency movement and 0.9% due to dispositions. Total revenues of $2.36 billion were flat year over year.
Over the past year, shares of Interpublic have lost 36.9% compared with 48.6% decline of the industry it belongs to and 4.3% decrease of the Zacks S&P 500 composite.
Let’s check out the numbers in detail.
Operating Results
Operating income in first-quarter 2020 came in at $75.9 million compared with $50.2 million in the prior-year quarter. Operating margin on net revenues improved to 3.8% from 2.5% in the year-ago quarter. Operating margin on total revenues rose to 3.2% from 2.1% in the year-ago quarter.
Adjusted EBITA came in at $97.2 million compared with $103.6 million at the end of the prior-year quarter. Adjusted EBITA margin on net revenues declined to 4.9% from 5.2% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 4.1% from 2.1% in the year-ago quarter.
Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise
Total operating expenses of $2.28 billion declined 1.2% year over year.
Balance Sheet
As of Mar 31, 2020, Interpublic had cash and cash equivalents of $1.55 billion compared with $1.19 billion at the end of the prior quarter. Total debt was $4.22 billion compared with $3.33 billion at the end of the prior quarter.
Dividend Payout
During the reported quarter, the company declared and paid out a cash dividend of 25.5 cents per share amounting to $100 million.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2020 earnings of key players like Verisk (VRSK - Free Report) , Republic Services (RSG - Free Report) and Fiserv . While Verisk and Republic Services are slated to release their results on May 5, Fiserv is scheduled to release the same on May 7.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Interpublic (IPG) Surpasses Q1 Earnings & Revenue Estimates
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported solid first-quarter 2020 results wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings of 11 cents per share beat the consensus mark by 22.2% but remained flat on a year-over-year basis. Net revenues of $1.97 billion beat the consensus estimate by 1.6% but decreased 16.5% on a year-over-year basis. The top line benefited from organic revenue growth of 0.3%, which was, however, partially offset by a negative impact of 1% due to foreign currency movement and 0.9% due to dispositions. Total revenues of $2.36 billion were flat year over year.
Over the past year, shares of Interpublic have lost 36.9% compared with 48.6% decline of the industry it belongs to and 4.3% decrease of the Zacks S&P 500 composite.
Let’s check out the numbers in detail.
Operating Results
Operating income in first-quarter 2020 came in at $75.9 million compared with $50.2 million in the prior-year quarter. Operating margin on net revenues improved to 3.8% from 2.5% in the year-ago quarter. Operating margin on total revenues rose to 3.2% from 2.1% in the year-ago quarter.
Adjusted EBITA came in at $97.2 million compared with $103.6 million at the end of the prior-year quarter. Adjusted EBITA margin on net revenues declined to 4.9% from 5.2% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 4.1% from 2.1% 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
Total operating expenses of $2.28 billion declined 1.2% year over year.
Balance Sheet
As of Mar 31, 2020, Interpublic had cash and cash equivalents of $1.55 billion compared with $1.19 billion at the end of the prior quarter. Total debt was $4.22 billion compared with $3.33 billion at the end of the prior quarter.
Dividend Payout
During the reported quarter, the company declared and paid out a cash dividend of 25.5 cents per share amounting to $100 million.
Zacks Rank & Upcoming Releases
Currently, Interpublic carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2020 earnings of key players like Verisk (VRSK - Free Report) , Republic Services (RSG - Free Report) and Fiserv . While Verisk and Republic Services are slated to release their results on May 5, Fiserv is scheduled to release the same on May 7.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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