The Interpublic Group of Companies, Inc
) reported second quarter 2014 net income of $99.4 million or 23
cents per share versus a net income of $79.9 million or 18 cents
per share in the year-ago quarter. The quarterly results were
driven by higher revenues.
Excluding one time items, earnings per share in the reported
quarter stood at 25 cents. Adjusted earnings were in-line with the
Zacks Consensus Estimate of 25 cents per share.
The Interpublic Group Of Companies Inc -
Quarterly EPS (BNRI) | FindTheBest
Revenue increased 5.4% year over year to $1,851.4 million in the
reported quarter. The increase in revenues was driven by organic
growth and acquisitions, partially offset by foreign currency
translations. Quarterly revenues beat the Zacks Consensus Estimate
of $1,848 million.
Organic revenues increased 4.7% year over year in the reported
quarter, while the impact of net acquisitions was up 1.2%. However,
foreign currency translations had a negative impact of 0.5%.
Operating income in the reported quarter was $195.8 million
compared with $174.8 million in the prior-year quarter. Operating
margin was 10.6% in the second quarter of 2014 compared with 10.0%
in the prior year.
Total operating expense in the quarter stood at $1,655.6 million
versus $1581.4 million in the prior-year quarter.
As of Jun 30, 2014, cash, cash equivalents and marketable
securities totaled $901.4 million versus $1.64 billion as of Dec
31, 2013. Total debt was $1.76 billion as of Jun 30, 2014 versus
$1.66 billion at Dec 31, 2013.
Share Repurchase Program/ Dividend
During the second quarter of 2014, the company repurchased 3.0
million shares for $52.4 million at an average price of $17.81 per
share. Dividends paid during the quarter amounted to $39.9 million.
During the quarter, the company issued $500 million of 4.20% senior
notes due 2024. The net proceeds will be utilized toward the
redemption of $350 million of its 6.25% senior unsecured notes.
Interpublic aims to boost its top-line performance with a
consistent focus on organic and inorganic growth. The company also
aims to return significant cash to shareholders through share
repurchases and dividend payouts. The company projects organic
growth in a range of 3%-4% and 10.3% operating margin in 2014.
The market reacted positively as share price increased in
Interpublic currently has a Zacks Rank #3 (Hold). However,
better-ranked stocks that are worth a look include
National CineMedia, Inc
Omnicom Group Inc
), each carrying a Zacks Rank #2 (Buy).
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