TMCnet News
Interpublic Q3 Profit Meets View, Revenues Top(dpa-AFX International Compact Via Acquire Media NewsEdge) WASHINGTON (dpa-AFX) - Advertising and marketing services provider Interpublic Group of Cos., Inc. (IPG) reported Wednesday a profit for the third quarter that nearly doubled from last year, reflecting improved operating margins, strong income of consolidated companies, and revenue growth. Earnings per share for the quarter matched analysts' expectations, while quarterly revenues topped their estimates. "We are pleased with strong growth in revenue and profitability during the quarter and for the first nine months of 2014. These results reflect the competitiveness of our agencies and the high quality of our people and our offerings, in all marketing disciplines and around the world," Chairman and CEO Michael Roth said in a statement. The New York-based company posted net income of $89.7 million or $0.21 per share for the third quarter, higher than $45.4 million or $0.11 per share in the prior-year quarter, which included a $0.06 per share charge related to early extinguishment of debt. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items. Revenue for the quarter increased 8.3 percent $1.84 billion from $1.70 billion in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $1.78 billion. Revenues in the U.S. grew 8.7 percent to $1.06 billion, and international revenues increased 7.7 percent to $779.3 million from last year. Organic revenue growth was 6.3 percent, with organic revenue increase of 4.2 percent internationally and 7.9 percent in the U.S. The effect of foreign currency translation on revenues was a positive 0.3 percent, and the impact of net acquisitions was a positive 1.7 percent. "Strategic actions taken over the years to develop our digital assets, creative talent and operations in the U.S. and emerging markets have positioned us to succeed in a marketing landscape that is increasingly fragmented, where offerings must be integrated, data-driven and focused wholly on the consumer," Roth stated. Operating income for the quarter grew 21.1 percent to $171.3 million, and operating margin expanded 100 basis points to 9.3 percent from last year. Income of consolidated companies nearly doubled to $92.5 million from $48.6 million in the year-ago quarter. Total operating expenses decreased 7.1 percent to $1.67 billion from a year ago, with salaries and related expenses declining 9.3 percent, as well as office and general expenses dropping 2.0 percent from last year. "With our largest quarter ahead and increased macro uncertainty, we will remain focused on meeting or exceeding our targets for the year. This will, in turn, allow us to continue to deliver increased shareholder value," Roth added. In Wednesday's regular trading session, IPG is currently trading at $18.27, up $0.37 or 2.07% on a volume of 1.43 million shares. Copyright RTT News/dpa-AFX |