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Interpublic Group (IPG) Q4 Earnings Beat Estimates, Fall Y/Y

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

Adjusted earnings (excluding 8 cents from non-recurring items) of 82 cents per share beat the Zacks Consensus Estimate by 2.5%. However, the bottom line dropped 4.7% on a year-over-year basis.

Net revenues of $2.5 billion beat the consensus estimate by 2.3% but declined negligibly on a year-over-year basis. Total revenues of $2.93 billion increased 15% year over year.

In the past year, shares of Interpublic have surged 60.7% compared with a 12.2% increase of the industry it belongs to.

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Operating Results

Operating income in the quarter came in at $457.3 million, surged more than 100% from the prior-year quarter’s levels. Operating margin on net revenues increased to 17.9% from 9.8% in the year-ago quarter. Operating margin on total revenues also increased to 16% from 8.8% in the year-ago quarter.

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

Adjusted EBITA came in at $478.8 million, up 95.5% from the prior-year quarter. Adjusted EBITA margin on net revenues increased to 18.8% from 10.7% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 16.3% from 9.6% in the year-ago quarter. Total operating expenses of $2.5 billion increased 6.5% year over year.

Balance Sheet & Cash Flow

As of Dec 31, 2021, Interpublic had cash and cash equivalents of $3.27 billion compared with $2.49 billion at the end of the prior quarter. Total debt was $2.96 billion compared with $3.45 billion at the end of the prior quarter.

IPG’s board declared a dividend hike of 7% to 29 cents per share. During the fourth quarter, IPG declared and paid a cash dividend of 27 cents per share for a total of $106.3 million.

Currently, Interpublic carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Sectorial Snapshot

Robert Half International RHI reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.

Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.

Automatic Data Processing ADP recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Rollins ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year. ROL currently carries a Zacks Rank #2.


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