The Interpublic Group of Companies Inc
) reported second quarter 2013 net income of $79.9 million or 18
cents per share versus a net income of $99.0 million or 22 cents
in the year-ago quarter. Reported earnings missed the Zacks
Consensus Estimate of 21 cents.
Revenues increased 2.4% year over year to $1,756.2 million in
second quarter 2013. The quarterly revenues marginally missed the
Zacks Consensus Estimate of $1,757 million.
Organic revenues increased 2.2% in the reported quarter. Foreign
currency translations had a negative impact of 1.0%, partially
offset by a 1.2% contribution from acquisitions.
Operating income in the second quarter of 2013 was $174.8 million
versus $176.4 million in the year-ago quarter. Operating margin
in the reported quarter was slightly down (+10.0%) compared with
the year-earlier quarter (+10.3%) as operating expenses went up
2.7% to $1,581.4 million. During the reported quarter, salaries
and related expense increased 2.9% and office and general
expenses were up of 2.4%.
As of Jun 30, 2013, the company's cash and cash equivalents and
marketable securities amounted to $1.62 billion, compared with
$1.51 billion in the year-ago period. Total debt was $2.26
billion as of Jun 30, 2013 compared with $2.45 billion as on Dec
Subsequent to the end of the quarter, the company redeemed $600
million of its 10.0% senior notes due 2017.
Share Repurchase Program/ Dividend
During second quarter 2013, the company repurchased 7.5 million
shares for $104.8 million, bringing its tally for first half of
the year to 13.7 million shares for an aggregate cost of $180.6
million. Dividends paid during the quarter aggregated 7.5 cents
per share totaling $31.7 million.
Interpublic aims to improve its top-line performance with a
continuous focus on organic and inorganic growth, and remaining
active on share repurchase and dividend payments. Moreover, its
commitment toward cost-control initiatives is likely to help the
company drive significant growth in the upcoming years. The
company expects 2% -3% organic revenue growth and 50 basis points
of margin improvement in 2013. Digital capabilities across its
portfolio are expected to be strong with increasing presence in
high-growth emerging markets at all major networks.
Interpublic currently has a Zacks Rank #3 (Hold). Other stocks
that look promising and are worth a look in the industry include
Publicis Groupe SA
) with a Zacks Rank #1 (Strong Buy), and
AirMedia Group Inc
), both carrying a Zacks Rank #2 (Buy).
AIRMEDIA GP-ADR (AMCN): Free Stock Analysis
HARTE-HANKS INC (HHS): Free Stock Analysis
INTERPUBLIC GRP (IPG): Free Stock Analysis
PUBLICIS GP-ADR (PUBGY): Get Free Report
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