IPG Earnings Prediction
The chart below shows how IPG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IPG sees a +2.66% change in stock price 10 days leading up to the earnings, and a +2.16% change 10 days following the report. On the earnings day itself, the stock moves by -3.08%. This data can give you a slight idea of what to expect for the next quarter's release.
IPG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.86B
-5.50%
8.68%
Gross Margin
21.20%
1.58%
44.32%
Operating Margin
19.65%
-2.24%
41.37%
Net Margin
12.54%
-19.62%
1263.04%
EPS
0.92
-23.97%
1740.00%
No Data Available
IPG Earnings Analysis
Interpublic Group of Companies Inc Corporation (IPG.N) Earnings Conference Call
Positive
EBITDA Margin Exceeds Target: Adjusted EBITDA margin was 24.3% in Q4, exceeding the full year margin target of 16.6%.
Earnings Per Share Analysis: Fourth quarter diluted earnings per share was $0.92 as reported and $1.11 as adjusted, with full year adjusted EPS at $2.77.
Shareholder Capital Return: Total capital returned to shareholders in 2024 was $727 million, demonstrating strong shareholder value.
Strong Financial Position: The company ended the year with $2.2 billion in cash and a low gross financial debt to EBITDA ratio of 1.7 times, indicating strong financial health.
E-commerce Enhancement Strategy: The planned acquisition of IntelligenceNode enhances e-commerce capabilities, providing clients with real-time insights and driving sales growth.
Negative
Organic Revenue Decline: Organic revenue decreased by 1.8% in Q4 2024, resulting in a full year organic growth of only 20 basis points, falling short of expectations due to intensified account activity headwinds.
Earnings Per Share Decline: Fourth quarter diluted earnings per share was $0.92, down from $2.99 in 2023, reflecting a significant decline attributed to the prior year's tax audit resolution benefit of $0.17 per share.
Q4 2024 Net Revenue Decline: Net revenue for Q4 2024 was $2.43 billion, a decrease of 5.9% year-over-year, with organic growth negatively impacted by 3.6% from net dispositions and a 50 basis point decline from exchange rates.
U.S. Market Revenue Decline: The U.S. market, which accounted for 60% of net revenue, saw an organic decrease of 3.2%, primarily due to account losses from late 2023 and throughout 2024, indicating ongoing challenges in domestic operations.
Advertising Segment Decline: The Integrated Advertising and Creativity segment experienced a significant organic decrease of 4.7% in Q4, largely due to the loss of a major healthcare client, contributing to a full year decline of 20 basis points in this segment.
IPG FAQs
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IPG Earning Call Sentiment
Earnings call transcript: Interpublic Group Q4 2024 misses EPS forecast
IPG.N
-2.35%Positive
The earnings call highlights several challenges: a decrease in organic revenue, suspension of share repurchases, and restructuring costs. Despite a stable EBITDA margin and cash position, the macroeconomic uncertainty, regulatory delays, and competitive pressures weigh heavily. The Q&A section reveals management's lack of clarity and cautious outlook. These factors, combined with the negative impact of the merger on share repurchases and the healthcare sector's performance, suggest a negative sentiment, likely leading to a stock price decline of -2% to -8% over the next two weeks.
