New York-based The Interpublic Group of Companies, Inc. 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 managed to beat estimates on three occasions, registering a positive average earnings surprise of 29.29%.
Currently, IPG has a Zacks Rank #3 (Hold), but that could definitely change following latest fourth-quarter earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: IPG comfortably beats on earnings. The company reported adjusted EPS of 75 cents, while the Zacks Consensus Estimate was 66 cents.
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise
Interpublic Group of Companies, Inc. (The) Price and EPS Surprise | Interpublic Group of Companies, Inc. (The) Quote
Revenues: Revenues beat, as IPG reported revenues of $2,264.5 million, compared with the Zacks Consensus Estimate of $2,260 million.
Key Stats to Note: IPG achieved healthy organic growth of 5.3% in the reported quarter with growth in all geographic regions. For full year 2017, the company expects organic growth in the range of 3–4%, with a 50 bps improvement in operating margins. IPG increased its quarterly dividend from 15 cents per share to 18 cents.
Stock Price: Shares were up in pre-market trading following the release on a healthy earnings beat.
Check back our full write up on this IPG earnings report later!
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