IPG Reports Loss - Analyst Blog

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On April 26, Interpublic Group of Companies Inc. ( IPG ) reported financial results for the first quarter of 2012. For the quarter, the company reported a loss of 10 cents per basic and diluted share in line with the loss recorded in the first quarter of 2011 and with that of the Zacks Consensus Estimate.

Revenue: Revenue in the first quarter inched up 2.2% year over year to $1,506.8 million, with 1.7% growth in the U.S. and 2.9% internationally. Revenue in the reported quarter marginally surpassed the Zacks Consensus Estimate of $1,492 million.

Organic revenue in the quarter increased 2.8% compared to the prior-year period based on the negative effect of foreign currency translation on one hand and a positive net acquisition impact on the other.

Margin: Operating loss was $39.4 million compared with $45.3 million in the year-ago period. Operating expenses in the quarter inched down 1.7% to $1,546.2 million. This included decrease of 2.3% in salaries and related expenses and a decline of 0.5% in office and general expenses. Operating margin in the quarter was (2.6)% compared with (3.1)% in the year-ago quarter.

Balance Sheet: Exiting the first quarter, the company's cash and cash equivalents and marketable securities amounted to $1.59 billion compared with $2.32 billion in the previous quarter. Total debt was recorded at $1.62 billion compared with $1.77 billion in the preceding quarter.

Dividend/Senior Notes: During the first quarter of 2012, the company paid a dividend of $0.06 per share, for a total consideration of $26.2 million. Moreover, the company repurchased 4.9 million shares of its common stock for $52.5 million. The average price was $10.61 per share.

In addition, the company retired $400 million of its 4.25% Convertible Senior Notes due 2023. This eliminated 33 million shares from eligible dilutive share count and thereafter issued $250 million in aggregate principal amount of its 4.00% Senior Notes due 2022.

IPG's diversified global presence--riding on new business investment-provides an edge above its peers, such as Omnicom Group Inc. ( OMC ), Publicis Groupe SA ( PUBGY ) and WPP plc ( WPPGY ).


 
INTERPUBLIC GRP ( IPG ): Free Stock Analysis Report
 
OMNICOM GRP ( OMC ): Free Stock Analysis Report
 
PUBLICIS GP-ADR ( PUBGY ): Free Stock Analysis Report
 
WPP PLC ( WPPGY ): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: IPG , OMC , PUBGY , WPPGY

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