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The Interpublic Group of Companies, Inc. (IPG - Free Report) has reported mixed second-quarter 2024 results, wherein earnings met the Zacks Consensus Estimate, while revenues beat the same.
IPG’s adjusted earnings (excluding 4 cents from non-recurring items) of 61 cents per share met the Zacks Consensus Estimate but decreased 17.6% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.3 billion surpassed the consensus estimate marginally but declined 12.7% year over year. Total revenues of $2.7 billion rose 1.6% year over year and surpassed the Zacks Consensus Estimate pegged at $2.3 billion.
IPG shares have declined 6.7% over the past year against the 2.8% fall of the industry it belongs to.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
The operating income in the quarter came in at $318.2 million, which increased 2.4% from the year-ago quarter and was lower than our estimate of $411.4 million.
Adjusted EBITA was $338.6 million, increasing 2% on a year-over-year basis but missing our estimate of $410.8 million. The adjusted EBITA margin on net revenues was 14.6%, gaining 30 basis points from the year-ago quarter. The figure missed our estimate of 17.7%.
Balance Sheet & Cash Flow
Interpublic ended the quarter with a cash and cash equivalent balance of $1.6 billion compared with $1.9 billion at the end of the previous quarter. Total debt was $3.2 billion, flat with the preceding quarter.
In the reported quarter, IPG repurchased shares for $130.1 million at an average cost of $31.8 per share, including fees. The company paid out a common stock cash dividend of 33 cents per share to $123.9 million.
2024 Guidance
For 2024, the company expects organic net revenues to grow 1% year over year. The adjusted EBITA margin is anticipated to be 16.6%.
Currently, Interpublic carries a Zacks Rank #4 (Sell).
PAYX’s earnings of $1.1 per share beat the Zacks Consensus Estimate by 1.8% and increased 15.5% from the year-ago quarter. Total revenues of $1.3 billion missed the consensus estimate marginally but rose 5.3% from the year-ago quarter.
FactSet Research Systems, Inc. (FDS - Free Report) reported mixed third-quarter fiscal 2024 results.
FDS’s earnings per share (excluding 28 cents from non-recurring items) of $4.4 beat the consensus mark by 11.8% and increased 15.3% from the year-ago quarter. However, revenues of $552.7 million missed the Zacks Consensus Estimate by a slight margin but rose 4.3% from the year-ago quarter.
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Interpublic (IPG) Q2 Earnings Meet Estimates, Decline Y/Y
The Interpublic Group of Companies, Inc. (IPG - Free Report) has reported mixed second-quarter 2024 results, wherein earnings met the Zacks Consensus Estimate, while revenues beat the same.
IPG’s adjusted earnings (excluding 4 cents from non-recurring items) of 61 cents per share met the Zacks Consensus Estimate but decreased 17.6% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.3 billion surpassed the consensus estimate marginally but declined 12.7% year over year. Total revenues of $2.7 billion rose 1.6% year over year and surpassed the Zacks Consensus Estimate pegged at $2.3 billion.
IPG shares have declined 6.7% over the past year against the 2.8% fall of the industry it belongs to.
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
Operating Results
The operating income in the quarter came in at $318.2 million, which increased 2.4% from the year-ago quarter and was lower than our estimate of $411.4 million.
Adjusted EBITA was $338.6 million, increasing 2% on a year-over-year basis but missing our estimate of $410.8 million. The adjusted EBITA margin on net revenues was 14.6%, gaining 30 basis points from the year-ago quarter. The figure missed our estimate of 17.7%.
Balance Sheet & Cash Flow
Interpublic ended the quarter with a cash and cash equivalent balance of $1.6 billion compared with $1.9 billion at the end of the previous quarter. Total debt was $3.2 billion, flat with the preceding quarter.
In the reported quarter, IPG repurchased shares for $130.1 million at an average cost of $31.8 per share, including fees. The company paid out a common stock cash dividend of 33 cents per share to $123.9 million.
2024 Guidance
For 2024, the company expects organic net revenues to grow 1% year over year. The adjusted EBITA margin is anticipated to be 16.6%.
Currently, Interpublic carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Paychex, Inc. (PAYX - Free Report) reported mixed fourth-quarter fiscal 2024 results.
PAYX’s earnings of $1.1 per share beat the Zacks Consensus Estimate by 1.8% and increased 15.5% from the year-ago quarter. Total revenues of $1.3 billion missed the consensus estimate marginally but rose 5.3% from the year-ago quarter.
FactSet Research Systems, Inc. (FDS - Free Report) reported mixed third-quarter fiscal 2024 results.
FDS’s earnings per share (excluding 28 cents from non-recurring items) of $4.4 beat the consensus mark by 11.8% and increased 15.3% from the year-ago quarter. However, revenues of $552.7 million missed the Zacks Consensus Estimate by a slight margin but rose 4.3% from the year-ago quarter.