Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Interpublic Group of Companies Inc reported on Friday quarterly revenue above expectations but warned that full-year sales would be hurt by the robust US dollar.

The advertising company stated a revenue of $2.21 billion for the three months ended December 31, up 4% compared to the same period of last year. Interpublic said performance was boosted as US companies spent more money on advertising.

Revenue from the US edged up 4.3% to $1.12 billion, or slightly more than half of the total figure, while the companys international operations achieved a 3.6% increase in revenue for the period.

Net income for the quarter stood at $308.9 million, or $0.73 a share, versus $193.1 million, or $0.44 a share, a year earlier. Excluding some items, per-share earnings were $0.57.

The financial figures were above the projection of $2.19 million in revenue and profit of $0.58 per share supplied by analysts surveyed by Thomson Reuters.

Operating income jumped 33.5% to 433 million in the three months, with operating margin improving from 15.3% a year ago to 19.6%.

As a result from the robust performance, the companys board has approved a 26% increase in its quarterly dividend and an additional $300 million toward its share repurchase program.

Interpublic appointed three new directors to its board last week, backed by the vote of activist investor Elliott Management Corp.

The company said earlier this month it had reached a standstill deal with Elliott, under which the management company agreed to support Interpublics nominees.

Elliott became the biggest shareholder of Interpublic after it purchased a 6.7% stake in July, following an ill-fated merger deal between rivals Publicis Groupe and Omnicom Group.

Since the acquisition, Elliott has been pressuring the giant advertiser to entertain the idea of a sale.

For the year ahead Interpublic projected organic revenue to expand by between 3% and 4%, worse compared to the 5.5% growth it reported in 2014. Operating margin is expected to expand by 80 to 100 basis points.

The company cited the robust dollar, which has gained more than 12% in value against the six major currencies during the past year, and political uncertainties in Europe as decision-drivers for its downbeat revenue-growth guidance.

“We are pleased to report strong 2014 results that reflect significant progress in the marketplace and exceeded our growth and margin targets,” said Chief Executive Michael Roth. “Looking to 2015, we believe the tone of the business is solid.”

Interpublic gained 1.73% on Thursday and closed at $21.16 in New York. On Friday the stock edged up 2.22% to $21.63 at 15:30 GMT, marking a one-year increase of 26.27%. The company is valued at $8.85 billion.

According to the Financial Times, the 17 analysts offering 12-month price targets for Interpublic have a median target of $21.00, with a high estimate of $24.00 and a low estimate of $18.00. The median estimate represents a 0.76% decrease from the last closing price.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Australian dollar lower against US peer after short-timed gains on ThursdayAustralian dollar lower against US peer after short-timed gains on Thursday On Thursday Australian dollar managed to regain some ground versus its US counterpart, after which lowered again during the course of Fridays session.AUD/USD pair reached a session low at 0.9566 during the later hours of Asian trade, after […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Yesterday’s trade saw USD/CAD within the range of 1.2878-1.3020. The pair closed at 1.3002, edging up 0.32% compared to Wednesdays close. It has been the 156th gain in the past 289 trading days. The major pair has increased its advance to […]
  • Samsung Electronics Co. reveals its new Galaxy S5 smartphone in an attempt to beat Apple’s flagmanSamsung Electronics Co. reveals its new Galaxy S5 smartphone in an attempt to beat Apple’s flagman Samsung Electronics Co. revealed a Galaxy S5 smartphone, which is provided with a fingerprint reader and a larger screen than the current model. The company is trying to engage the attention of its high-end customers in order to keep them away […]
  • Forex Market: GBP/USD daily trading outlookForex Market: GBP/USD daily trading outlook Yesterday’s trade saw GBP/USD within the range of 1.4378-1.4516. The pair closed at 1.4461, edging up 0.19% on a daily basis. It has been the 10th gain in the past 27 trading days.At 8:09 GMT today GBP/USD was inching up 0.03% for the day […]
  • Market Briefing on Wednesday June 29thMarket Briefing on Wednesday June 29th Having been contained between the hourly 55-period and the 100-period Exponential Moving Averages in the past several hours of trade, EUR/USD managed to break above the 55-period EMA and, at the start of the US trading session, it tested the […]
  • Natural gas weekly recap, September 29 – October 3Natural gas weekly recap, September 29 – October 3 Natural gas rose for the first time in four days on Friday to reverse its weekly decline ahead of a cold Canadian pattern and on signs that nationwide stockpiles at the start of the heating season will trail last years levels.Natural gas […]