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Interpublic's (IPG) Earnings Match Estimates, Revenues Miss
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The Interpublic Group of Companies, Inc.’s (IPG - Free Report) fourth-quarter 2022 earnings matched the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings (considering 26 cents from non-recurring items) came in at $1.02 and grew 24.4% on a year-over-year basis.
Net revenues of $2.55 billion missed the consensus estimate by 0.2% and increased slightly on a year-over-year basis. Total revenues of $2.99 billion increased 1.8% year over year.
Shares of IPG have dropped by 3.2% in the past year compared with its industry’s 17.8% decrease.
Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise
The operating income in the quarter came in at $444.6 million, down 2.8% from the prior-year quarter’s levels. The operating margin on net revenues decreased to 17.4% from 17.9% in the year-ago quarter. The operating margin on total revenues also decreased to 14.9% from 15.6% in the year-ago quarter.
Adjusted EBITA came in at $568.4 million, increasing 15.4% from the prior-year quarter’s level. Adjusted EBITA margin on net revenues increased to 22.3% from 19.3% in the year-ago quarter. Adjusted EBITA margin on total revenues jumped to 19% from 16.8% in the year-ago quarter. Total operating expenses of $2.54 billion decreased 2.7% year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Interpublic had cash and cash equivalents of $2.55 billion, 22% down from the year-ago reported figure. Total debt was $2.92 billion reduced from the $2.96 billion reported a year ago.
For the full year 2022, IPG repurchased 10.3 million shares at an average cost of $31.0 per share totaling $320.1 million including fees. In the fourth quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for $112.2 million.
2023 Guidance
The company expects the organic net revenue to grow around 2-4%
The adjusted EBITA margin is expected to be 16.7%.
The company has also approved a dividend increase of 7% to 31 cents and a share repurchase of $350 million.
The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.
Gartner, Inc. (IT - Free Report) having Zacks Rank #3 (Hold) reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.
Aptiv PLC (APTV - Free Report) carrying Zacks Rank #3 reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenue surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.
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Interpublic's (IPG) Earnings Match Estimates, Revenues Miss
The Interpublic Group of Companies, Inc.’s (IPG - Free Report) fourth-quarter 2022 earnings matched the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings (considering 26 cents from non-recurring items) came in at $1.02 and grew 24.4% on a year-over-year basis.
Net revenues of $2.55 billion missed the consensus estimate by 0.2% and increased slightly on a year-over-year basis. Total revenues of $2.99 billion increased 1.8% year over year.
Shares of IPG have dropped by 3.2% in the past year compared with its industry’s 17.8% decrease.
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
Operating Results
The operating income in the quarter came in at $444.6 million, down 2.8% from the prior-year quarter’s levels. The operating margin on net revenues decreased to 17.4% from 17.9% in the year-ago quarter. The operating margin on total revenues also decreased to 14.9% from 15.6% in the year-ago quarter.
Adjusted EBITA came in at $568.4 million, increasing 15.4% from the prior-year quarter’s level. Adjusted EBITA margin on net revenues increased to 22.3% from 19.3% in the year-ago quarter. Adjusted EBITA margin on total revenues jumped to 19% from 16.8% in the year-ago quarter. Total operating expenses of $2.54 billion decreased 2.7% year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Interpublic had cash and cash equivalents of $2.55 billion, 22% down from the year-ago reported figure. Total debt was $2.92 billion reduced from the $2.96 billion reported a year ago.
For the full year 2022, IPG repurchased 10.3 million shares at an average cost of $31.0 per share totaling $320.1 million including fees. In the fourth quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for $112.2 million.
2023 Guidance
The company expects the organic net revenue to grow around 2-4%
The adjusted EBITA margin is expected to be 16.7%.
The company has also approved a dividend increase of 7% to 31 cents and a share repurchase of $350 million.
Currently, Interpublic sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.
Gartner, Inc. (IT - Free Report) having Zacks Rank #3 (Hold) reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.
Aptiv PLC (APTV - Free Report) carrying Zacks Rank #3 reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenue surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.