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Interpublic Group (IPG) Q4 Earnings Beat Estimates, Fall Y/Y
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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected fourth-quarter 2021 results.
Adjusted earnings (excluding 8 cents from non-recurring items) of 82 cents per share beat the Zacks Consensus Estimate by 2.5%. However, the bottom line dropped 4.7% on a year-over-year basis.
Net revenues of $2.5 billion beat the consensus estimate by 2.3% but declined negligibly on a year-over-year basis. Total revenues of $2.93 billion increased 15% year over year.
In the past year, shares of Interpublic have surged 60.7% compared with a 12.2% increase of the industry it belongs to.
Image Source: Zacks Investment Research
Operating Results
Operating income in the quarter came in at $457.3 million, surged more than 100% from the prior-year quarter’s levels. Operating margin on net revenues increased to 17.9% from 9.8% in the year-ago quarter. Operating margin on total revenues also increased to 16% from 8.8% in the year-ago quarter.
Interpublic Group of Companies, Inc. The Price, Consensus and EPS Surprise
Adjusted EBITA came in at $478.8 million, up 95.5% from the prior-year quarter. Adjusted EBITA margin on net revenues increased to 18.8% from 10.7% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 16.3% from 9.6% in the year-ago quarter. Total operating expenses of $2.5 billion increased 6.5% year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Interpublic had cash and cash equivalents of $3.27 billion compared with $2.49 billion at the end of the prior quarter. Total debt was $2.96 billion compared with $3.45 billion at the end of the prior quarter.
IPG’s board declared a dividend hike of 7% to 29 cents per share. During the fourth quarter, IPG declared and paid a cash dividend of 27 cents per share for a total of $106.3 million.
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year. ROL currently carries a Zacks Rank #2.
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Interpublic Group (IPG) Q4 Earnings Beat Estimates, Fall Y/Y
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected fourth-quarter 2021 results.
Adjusted earnings (excluding 8 cents from non-recurring items) of 82 cents per share beat the Zacks Consensus Estimate by 2.5%. However, the bottom line dropped 4.7% on a year-over-year basis.
Net revenues of $2.5 billion beat the consensus estimate by 2.3% but declined negligibly on a year-over-year basis. Total revenues of $2.93 billion increased 15% year over year.
In the past year, shares of Interpublic have surged 60.7% compared with a 12.2% increase of the industry it belongs to.
Operating Results
Operating income in the quarter came in at $457.3 million, surged more than 100% from the prior-year quarter’s levels. Operating margin on net revenues increased to 17.9% from 9.8% in the year-ago quarter. Operating margin on total revenues also increased to 16% from 8.8% 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
Adjusted EBITA came in at $478.8 million, up 95.5% from the prior-year quarter. Adjusted EBITA margin on net revenues increased to 18.8% from 10.7% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 16.3% from 9.6% in the year-ago quarter. Total operating expenses of $2.5 billion increased 6.5% year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Interpublic had cash and cash equivalents of $3.27 billion compared with $2.49 billion at the end of the prior quarter. Total debt was $2.96 billion compared with $3.45 billion at the end of the prior quarter.
IPG’s board declared a dividend hike of 7% to 29 cents per share. During the fourth quarter, IPG declared and paid a cash dividend of 27 cents per share for a total of $106.3 million.
Currently, Interpublic carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Sectorial Snapshot
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year. ROL currently carries a Zacks Rank #2.