Interpublic Group of Cos. (NYSE: IPG) reported Q3 EPS of $0.53, $0.20 better than the analyst estimate of $0.33. Revenue for the quarter came in at $1.95 billion versus the consensus estimate of $1.87 billion.

• Third quarter reported net revenue of $1.95 billion, a decrease of 5.2% from a year ago, with organic net revenue decrease of 3.7%, due to impact of COVID-19 macroeconomic disruption
• Third quarter organic change of net revenue was negative 2.4% in the US and was negative 6.0% in International markets
• First nine months reported net revenue decrease of 6.7%, and organic net revenue decrease of 4.5%
• Third quarter reported net income was $279.7 million, including restructuring charges, and adjusted EBITA was $317.2 million before restructuring charges
• Third quarter adjusted EBITA margin of 16.2% before restructuring charges
• Third quarter diluted earnings per share of $0.71 and diluted earnings per share of $0.53 as adjusted
• First nine months diluted earnings per share of $0.61 and diluted earnings per share of $0.87 as adjusted
• Management continued a program of structural operating cost reduction, resulting in restructuring charges in the quarter of $47.3 million
• Management highlights exceptional base of talent, continued investment in offerings, and sustained industry leadership

Michael Roth, Chairman and CEO, IPG:

“At IPG, we continue to stay focused on the safety, health and well-being of our employees, clients, and key partners. In light of the very challenging environment, we are proud of our results in the quarter, and the work our people are doing under such challenging and extraordinary circumstances. This level of performance demonstrates how effectively our companies and our people have adjusted to new ways of working.”

“During the quarter, we continued to stay close to clients, and invest in our offerings, while managing operating expenses to revenue. Unquestionably, there will be enduring consumer changes because of the pandemic, including the mass shift to ecommerce, the emergence of digital consumer experience, and a deeper accountability for brand authenticity and purpose. At IPG, we are distinctively well-resourced with outstanding talent and tools to help marketers re-think and re-imagine their brands. Our new business pipeline continues to be active, and has begun to recover relative to earlier this year. We continue our program of structural operating cost reduction to lower our expense base, and raise our margin potential going forward. Our balance sheet and liquidity continue to be further areas of strength.”

“Looking forward to our important fourth quarter, visibility remains unclear for as long as COVID-19 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 macro 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.”

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