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Interpublic Group (IPG) Beats Q2 Earnings & Revenue Estimates

The Interpublic Group of Companies, Inc. IPG reported better-than-expected second-quarter 2021 results.

Adjusted earnings (excluding 4 cents from non-recurring items) of 70 cents per share beat the Zacks Consensus Estimate by 55.6%. Moreover, the bottom line surged more than 100% on a year-over-year basis.

Net revenues of $2.3 billion beat the consensus estimate by 8.7% and increased 12% on a year-over-year basis. The upside was caused by organic net revenues increase of 19.8% and foreign currency translation was positive 3.1%. Total revenues of $2.51 billion increased 23.6% year over year.

So far this year, shares of Interpublic have gained 33% compared with 8% increase of the industry it belongs to.


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Operating Results

Operating income in the quarter came in at $384.4 million, up more than 100% from the prior-year quarter’s figure. Operating margin on net revenues surged to 16.9% from 2.2% in the year-ago quarter. Operating margin on total revenues also increased to 15.3% from 2% in the year-ago quarter.

Adjusted EBITA came in at $405.8 million, up more than 100% from the prior-year quarter. Adjusted EBITA margin on net revenues increased to 17.9% from 9.4% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 16.2% from 8.6% in the year-ago quarter. Total operating expenses of $2.1 billion increased 7.1% year over year.

Balance Sheet

As of Jun 30, 2021, Interpublic had cash and cash equivalents of $2.34 billion compared with $2.02 billion at the end of the prior quarter. Total debt was $3.47 billion compared with $3.45 billion at the end of the prior quarter.

During the second quarter, the company paid out a cash dividend of 27 cents per share, amounting to $106.1 million.

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

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are keenly awaiting second-quarter 2021 earnings reports of key players like Waste Connections WCN, Waste Management WM and Republic Services RSG. While Waste Connections will release results on Aug 4, Waste Management and Republic Services will report the same on Jul 27 and Jul 29, respectively.
 


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Interpublic Group of Companies, Inc. The (IPG): Free Stock Analysis Report
 
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