The Interpublic Group of Companies (NYSE:IPG), Inc. IPG reported better-than-expected second-quarter 2021 results.
Adjusted earnings (excluding 4 cents from non-recurring items) of 70 cents per share beat the Zacks Consensus Estimate by 55.6%. Moreover, the bottom line surged more than 100% on a year-over-year basis.
Net revenues of $2.3 billion beat the consensus estimate by 8.7% and increased 12% on a year-over-year basis. The upside was caused by organic net revenues increase of 19.8% and foreign currency translation was positive 3.1%. Total revenues of $2.51 billion increased 23.6% year over year.
So far this year, shares of Interpublic have gained 33% compared with 8% increase of the industry it belongs to.
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Operating Results
Operating income in the quarter came in at $384.4 million, up more than 100% from the prior-year quarter’s figure. Operating margin on net revenues surged to 16.9% from 2.2% in the year-ago quarter. Operating margin on total revenues also increased to 15.3% from 2% in the year-ago quarter.
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 $405.8 million, up more than 100% from the prior-year quarter. Adjusted EBITA margin on net revenues increased to 17.9% from 9.4% in the year-ago quarter. Adjusted EBITA margin on total revenues rose to 16.2% from 8.6% in the year-ago quarter. Total operating expenses of $2.1 billion increased 7.1% year over year.
Balance Sheet
As of Jun 30, 2021, Interpublic had cash and cash equivalents of $2.34 billion compared with $2.02 billion at the end of the prior quarter. Total debt was $3.47 billion compared with $3.45 billion at the end of the prior quarter.
During the second quarter, the company paid out a cash dividend of 27 cents per share, amounting to $106.1 million.
Currently, Interpublic sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector are keenly awaiting second-quarter 2021 earnings reports of key players like Waste Connections (NYSE:WCN) WCN, Waste Management (NYSE:WM) WM and Republic Services (NYSE:RSG) RSG. While Waste Connections will release results on Aug 4, Waste Management and Republic Services will report the same on Jul 27 and Jul 29, respectively.
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Interpublic Group of Companies, Inc. The (IPG): Free Stock Analysis Report
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