Earnings Review and Free Research Report: The Interpublic Reported Flat Adjusted EPS Growth

Research Desk Line-up: Omnicom Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Interpublic Group of Cos., Inc. (NYSE: IPG) ("The Interpublic"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=IPG, following the Company's announcement of its financial results on October 24, 2017, for the third quarter of the fiscal year 2017. The New York-based Company reported a 0.5% y-oy growth in organic revenues over the prior year's same period. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Advertising Agencies industry. Pro-TD has currently selected Omnicom Group Inc. (NYSE: OMC) for due-diligence and potential coverage as the Company announced on October 17, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Omnicom when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on IPG; also brushing on OMC. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

During the three months ended September 30, 2017, The Interpublic reported total revenue of $1.90 billion, which came in 1% below the $1.92 billion recorded at the end of Q3 FY16. The total revenue numbers missed market expectations of $1.95 billion. However, the Company posted a 0.5% growth in organic revenue, which, excluding the impact of lower pass-through revenue, increased 1.5% y-o-y.

The marketing and advertising Company reported a net income of $146.2 million, or $0.37 per diluted share, in Q3 FY17 compared to $128.6 million, or $0.32 per diluted share, in the prior year's corresponding period. Meanwhile, the Company's adjusted net income was $122.0 million, or $0.31 per diluted share, in Q3 FY17 compared to $124.7 million, or $0.31 per diluted share, in the past year's comparable quarter. Wall Street had expected the Company to report adjusted net income of $0.33 per diluted share.

Operating Metrics

In the reported quarter, The Interpublic incurred $1.23 billion on salaries and related expenses, which was flat compared to the year-ago same quarter. The staff cost ratio was 64.5% in Q3 FY17 compared to 63.9% a year ago. The Company's office and general expenses came in at $455.9 million for Q3 FY17 versus $486.2 million in the year-ago comparable period. The Company's operating income increased to $219.1 million, or 11.5% of total revenues, during Q3 FY17 from $208.0 million, or 10.8% of total revenues, in the third quarter of FY16.

Revenue by Region

The Company generated a total of $1.16 billion from the US markets, which was 0.8% lower than the $1.17 billion reported in Q3 FY16. Meanwhile, International revenues declined 1.3% to $746.6 million in Q3 FY17 from $756.3 million in the last year's corresponding period.

Cash Flow and Balance Sheet

During the first three-quarters of FY17, The Interpublic reported a negative net cash flow from operating activities of $139.0 million compared to a negative net cash flow from operating activities of $26.9 million in the year-ago same period. At the close of books on September 30, 2017, The Interpublic had a cash and cash equivalents balance of $704.9 million versus $1.10 billion at the close of books on December 31, 2016. Additionally, the Company's long-term debt increased to stand at $1.29 billion as on September 30, 2017, from $1.28 billion as on December 31, 2016.

Share Buyback

During Q3 FY17, the Company repurchased 4.7 million shares at an aggregate cost of $101.0 million and at an average price of $21.69 per share. Furthermore, the Company has repurchased as total of 9.4 million shares of its common stock at an aggregate cost of $216.0 million and at an average price of $22.92 per share during the first nine months of FY17.

Stock Performance

At the close of trading session on Monday, November 06, 2017, The Interpublic Group of Cos.' stock price slightly rose 0.85% to end the day at $19.09. A total volume of 5.23 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 23.63 and have a dividend yield of 3.77%. At Monday's closing price, the stock's net capitalization stands at $7.42 billion.

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SOURCE: Pro-Trader Daily