Interpublic Group of Cos. (IPG) Tops Q2 EPS by 3c

Interpublic Group of Cos. (NYSE: IIPG) reported Q2 EPS of $0.23, $0.03 better than the analyst estimate of $0.20. Revenue for the quarter came in at $1.85 billion versus the consensus estimate of $1.73 billion.

• Second quarter reported net revenue of $1.85 billion, a decrease of 12.8% from a year ago, with organic net revenue decrease of 9.9%, due to impact of global economic contraction in the quarter
• First half reported net revenue decrease of 7.4%, and organic net revenue decrease of 5.0%
• Second quarter reported net loss was $45.6 million including restructuring charges, and adjusted EBITA was $174.9 million before restructuring charges
• Second quarter adjusted EBITA margin of 9.4% before restructuring charges
• Second quarter diluted loss per share of $0.12 and diluted earnings per share of $0.23 as adjusted
• First half diluted loss per share of $0.11 and diluted earnings per share of $0.34 as adjusted
• Management initiated program of extensive structural operating cost reduction, resulting in restructuring charges in the quarter of $112.6 million
• Management highlights strategic and operating strengths, exceptional talent base, deep financial resources, and flexible cost model

Michael Roth, Chairman and CEO, IPG:

“As we navigate the global pandemic, at IPG, we will stay focused on the safety, health and well-being of our employees, clients, and other key partners. As expected, our results bear the imprint of the severity of the health crisis and its economic impact. However, our companies and our people have adjusted quickly to these uncertain times and new ways of working, as evident in our results, which once again show IPG outperforming the sector.

“During the quarter, our company maintained the high quality of our services and forged deeper relationships with our clients, while effectively managing expenses, and continuing to invest in our future. Notably, we furthered our progress in the most contemporary disciplines, including media, data and technology offerings, as well as our healthcare marketing offerings. We remain new business positive year-to-date, and our pipeline of business opportunities is solid. We initiated a program of structural operating cost reduction to lower our expense base, and raise our margin opportunities going forward. Our balance sheet and liquidity continue to be further areas of strength. These accomplishments underscore the vitality of our offerings, the exceptional talent of our people, and the flexibility of our business model.

“Looking forward, visibility will remain unclear for as long as COVID is disrupting everyday life and macroeconomic conditions. As always, we will be disciplined in how we manage the business, aligning expenses closely to any changes in revenue. We look forward to returning to our strong trajectory of organic revenue and profit growth as a recovery takes hold. We are thankful for the continued close partnership with our clients, and proud of our employees around the world for their outstanding work and productivity despite all the challenges brought by the pandemic.”

For earnings history and earnings-related data on Interpublic Group of Cos. (IPG ) click here.

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