Interpublic Group of Companies
The 10-second takeaway
For the quarter ended June 30 (Q2), Interpublic Group of Companies met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Interpublic Group of Companies reported revenue of $1.76 billion. The 15 analysts polled by S&P Capital IQ looked for net sales of $1.75 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.18. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.18 for Q2 were 18% lower than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.2%, 30 basis points worse than the prior-year quarter. Operating margin was 10.0%, 30 basis points worse than the prior-year quarter. Net margin was 4.7%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.72 billion. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $7.14 billion. The average EPS estimate is $0.86.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 177 members out of 201 rating the stock outperform, and 24 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Interpublic Group of Companies a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interpublic Group of Companies is outperform, with an average price target of $15.14.
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