Interpublic’s (IPG) Q4 Earnings Beat Estimates, Rise Y/Y

The Interpublic Group of Companies, Inc. IPG reported better-than-expected fourth-quarter 2023 results.

Adjusted earnings of $1.18 per share surpassed the Zacks Consensus Estimate by 1.7% and increased 15.7% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.6 billion surpassed the consensus estimate marginally and increased 1.4% year over year. Total revenues of $3 billion increased 1.3% year over year.

Interpublic’s shares have declined 13.2% in the past year compared with the 13.6% fall of the industry it belongs to.

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 $606.8 million, which increased 36.5% from the prior-year quarter’s levels and was higher than our expected $602.9 million. The operating margin on net revenues increased to 23.5% from 17.4% in the year-ago quarter and exceeded our estimated 14.6%.

Adjusted EBITA was $627.7 million, increasing 34.5% from the prior-year quarter’s level but missing our estimated $626.6 million. Adjusted EBITA margin on net revenues stayed in line with our estimates, increasing to 24.3% from 18.3% in the year-ago quarter.

Balance Sheet & Cash Flow

Interpublic ended the quarter with a cash and cash equivalents balance of $2.4 billion compared with $1.6 billion at the end of the previous quarter. Total debt was $3.2 billion, flat with the previous quarter’s figure.

IPG repurchased 4.3 million shares at an average cost of $30.7 per share, totaling $131.2 million, including fees, in the quarter. The company paid out a common stock cash dividend of 31 cents per share to a total of $117.9 million.

2024 Guidance

The company expects organic net revenues to grow at around 1-2%. The adjusted EBITA margin is expected to be 16.6%.

Currently, Interpublic carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Robert Half RHI reported better-than-expected fourth-quarter 2023 results.

Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.

Aptiv APTV reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.

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