New York-based Interpublic IPG 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 beat earnings twice, registering a positive average earnings surprise of 26.9%.
Currently, IPG has a Zacks Rank #4 (Sell), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: IPG comfortably beat on earnings. Our consensus called for earnings per share of 24 cents, while the company reported EPS of 27 cents.
Revenue: Revenues beat, as IPG posted revenues of $1,866 million, compared to our consensus estimate of $1,821 million.
Key Stats to Note: IPG achieved strong organic growth of 7.1% in the reported quarter, with a double-digit year-over-year growth in operating income. For 2015, IPG expects organic revenue growth in the range of 4-5%, with 100 basis points of operating margin improvement over the previous year.
Stock Price: Shares prices remained flat in pre-market trading following the earnings beat at the time of writing.
Check back our full write up on this IPG earnings report later!
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