The Interpublic Group of Companies, Inc
) reported first quarter 2013 net loss of $59.2 million or 14
cents per share versus net loss of $45.9 million or 10 cents in
the year-ago quarter. Reported loss was wider than the
Zacks Consensus Estimate of a loss of 13 cents.
Revenue increased 2.4% year over year to $1,543 million in first
quarter 2013. The quarterly results beat the Zacks Consensus
Estimate of $1,525 million.
Organic revenues increased 2.3% in reported the quarter, while
foreign currency translations had a negative impact of 0.8%.
These were partially offset by a 0.9% contribution from
Operating loss in the first quarter of 2013 was $42.4 million
versus loss of $39.4 million in the year-ago quarter. Operating
margin in the quarter was (2.7%) compared with (2.6%) in the
year-ago quarter. Operating expenses in the quarter went up 2.5%
to $1,585.4 million. During the reported quarter, salaries and
related expense increased 2.5% and office and general expenses
were up of 2.7%.
As of Mar 31, 2013, the company's cash and cash equivalents and
marketable securities amounted to $1.65 billion, compared with
$1.59 billion in the year-ago period. Total debt was $2.23
billion compared with $2.45 billion at Dec 31, 2012
During the reported quarter, the company retired $200 million of
its 4.75% convertible Senior Notes due 2023.
Share Repurchase Program/ Dividend
During first quarter 2013, the company repurchased 6.2 million
shares for $75.8 million. Additionally, the company authorized an
increase in its repurchase program from $300 million to $500
million. Dividends paid during the quarter amounted to 7.5 cents
Interpublic aims to improve its top-line performance with a
continuous focus on share repurchase and increased dividends and
its commitment toward cost control is likely to position the
company well to drive significant growth in the upcoming year.
However, Interpublic currently has a Zacks Rank #3 (Hold). Other
stocks that look promising and are worth a look now are
VisionChina Media Inc
) with a Zacks Rank#1 (strong Buy).,
AirMedia Group Inc
), each carrying a Zacks Rank #2 (Buy).
AIRMEDIA GP-ADR (AMCN): Free Stock Analysis
FISERV INC (FISV): Free Stock Analysis Report
INTERPUBLIC GRP (IPG): Free Stock Analysis
VISIONCHINA MDA (VISN): Free Stock Analysis
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