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Interpublic Group (IPG) Q2 Earnings & Revenues Beat Estimates

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The Interpublic Group of Companies, Inc. IPG reported better-than-expected second-quarter 2022 results.

Adjusted earnings (excluding 5 cents from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 8.6%. However, the bottom line dropped 10% on a year-over-year basis.

Net revenues of $2.38 billion beat the consensus estimate by 3.1% but declined 5.3% on a year-over-year basis. Total revenues of $2.74 billion increased 9% year over year.

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

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

Operating income in the quarter came in at $349.1 million, down 9.2% from the prior-year quarter’s levels. Operating margin on net revenues decreased to 14.7% from 16.9% in the year-ago quarter. Operating margin on total revenues also decreased to 12.8% from 15.3% in the year-ago quarter.

Adjusted EBITA came in at $370.2 million, down 8.8% from the prior-year quarter’s level. Adjusted EBITA margin on net revenues decreased to 15.6% from 17.9% in the year-ago quarter. Adjusted EBITA margin on total revenues fell to 13.5% from 16.2% in the year-ago quarter. Total operating expenses of $2.39 billion decreased 12.3% year over year.

Balance Sheet & Cash Flow

As of Jun 30, 2022, Interpublic had cash and cash equivalents of $1.98 billion compared with $2.40 billion at the end of the prior quarter. Total debt was $2.95 billion compared with $2.97 billion at the end of the prior quarter.
During the June quarter of 2022, IPG repurchased 2.7 million shares of its common stock at an aggregate cost of $84.8 million and an average price of $32.84 per share, including fees. In the second quarter of 2022, IPG declared and paid out a common stock cash dividend of 29 cents per share for $113.8 million.

Currently, Interpublic carries a Zacks Rank #5 (Strong Sell).

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

Upcoming Releases

Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare CCRN, Waste Management WM and Republic Services RSG, which will report second-quarter 2022 numbers soon.

Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.

CCRN's shares have gained 89.7% in the past year. Cross Country Healthcare has a long-term earnings growth of 6.9%.

Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.

WM’s shares have gained 5.4% in the past year. Waste Management has a long-term earnings growth of 10.9%.

Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.

RSG’s shares have gained 12.4% in the past year. Republic Services has a long-term earnings growth of 10.5%.


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