Interpublic Group of Companies
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Interpublic Group of Companies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share expanded. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, net margins expanded.
Interpublic Group of Companies reported revenue of $2.06 billion. The 14 analysts polled by S&P Capital IQ predicted sales of $2.07 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 $0.56. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. Non-GAAP EPS of $0.56 for Q4 were 12% higher than the prior-year quarter's $0.50 per share. GAAP EPS of $0.68 for Q4 were 45% higher than the prior-year quarter's $0.47 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 45.0%, 30 basis points worse than the prior-year quarter. Operating margin was 19.9%, 110 basis points better than the prior-year quarter. Net margin was 15.3%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $7.19 billion. The average EPS estimate is $0.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 182 members out of 208 rating the stock outperform, and 26 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Interpublic Group of Companies a green thumbs-up, and seven 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 $12.73.
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