The Interpublic Group of Companies, Inc. IPG has reported lower-than-expected fourth-quarter 2024 results.

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IPG’s adjusted earnings of $1.11 per share missed the Zacks Consensus Estimate by 3.5% and decreased 5.9% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.4 billion missed the consensus estimate by 2.9% and declined 19.5% year over year. Total revenues of $2.9 billion fell 5.3% year over year and outpaced the Zacks Consensus Estimate of $2.5 billion.

IPG shares have lost 11.5% in the past six months compared with the 7.8% decline of the industry it belongs and against the Zacks S&P 500 composite’s rise of 12.4%.

Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise

Interpublic Group's Operating Results

The operating income in the quarter came in at $567.9 million, which decreased 6.4% from the year-ago quarter and missed our estimate of $586.4 million.

Adjusted EBITA was $588.3 million, decreasing 6.3% on a year-over-year basis and missing our estimate of $609 million. The adjusted EBITA margin on net revenues was 24.2%, down 10 basis points from the year-ago quarter. The figure beat our expectation of 20.5%.

Balance Sheet & Cash Flow of IPG

Interpublic Group ended the quarter with a cash and cash equivalent balance of $2.2 billion compared with $1.5 billion at the end of the previous quarter. Total debt was $3 billion compared with $2.9 billion in the preceding quarter.

The company paid out a common stock cash dividend of 33 cents per share to $122.8 million.

Interpublic Group's 2025 Guidance

IPG expects 2025 organic net revenues to grow 1-2% year over year. The adjusted EBITA margin is anticipated to be 16.6%.

Interpublic Group carries a Zacks Rank #4 (Sell) at present.

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

Earnings Snapshots

Gartner, Inc. IT reported better-than-expected fourth-quarter 2024 results.

IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.

Automatic Data Processing, Inc. ADP posted impressive second-quarter fiscal 2025 results.

ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.6% and grew 8.1% on a year-over-year basis.

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