NYSE$IPG

Interpublic Group of Companies Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Interpublic Group reported an increase in net revenue and net income, driven by organic growth and strategic restructuring actions.

Interpublic Group (IPG) announced its first quarter 2021 results, featuring a 2.8% increase in net revenue to $2.03 billion and organic net revenue growth of 1.9%. Net income was reported at $91.7 million, with adjusted EBITA before restructuring at $265.9 million. The company's diluted EPS was $0.23 as reported, and $0.45 as adjusted. IPG is positioned to deliver full-year 2021 organic growth of 5.0% to 6.0% and adjusted EBITA margin of approximately 15.5%.

  • Net revenue increased by 2.8% to $2.03 billion, with organic net revenue growth of 1.9%.
  • Net income was $91.7 million, and adjusted EBITA before restructuring was $265.9 million.
  • Diluted EPS was $0.23 as reported and $0.45 as adjusted.
  • The company expects full-year 2021 organic growth of 5.0% to 6.0% and an adjusted EBITA margin of approximately 15.5%.

Headline financials

Total Revenue

$2.26B

Previous: $2.36B-4.4%
EPS (adj)

$0.45

Previous: $0.11+309.1%
Organic Net Revenue Growth

1.9%

Previous: 0.3%+533.3%
Adjusted EBITA Margin

13.1%

Previous: 4.9%+167.3%
Capital Expenditures

-$28.3M

Previous: -$44.6M+36.5%
Free Cash Flow

-$278M

Previous: -$322M+13.6%
Net Income

$91.7M

Previous: $4.7M+1851.1%
Operating Income

$243M

Previous: $75.9M+220.2%
Gross Profit

$342M

Previous: $171M+99.7%
Cash & Equivalents

$2.02B

Previous: $1.55B+29.7%
Total Assets

$16.3B

Previous: $16.4B-0.5%
Stock-Based Comp

$20.3M

Previous: $23.2M-12.5%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.26B

Q1 2021-4.4%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

IPG anticipates delivering full-year 2021 organic growth in the range of 5% to 6% and achieving an adjusted EBITA margin of approximately 15.5%, predicated on a reasonably steady course of global economic recovery.

Tailwinds

  • Company is positioned to deliver full-year 2021 organic growth of 5.0% to 6.0%.
  • Company expects to achieve 2021 adjusted EBITA margin of approximately 15.5%.
  • Strong start to the year reflects the quality of talent across the organization.
  • Successful evolution of offerings at a time of accelerating, transformational change.
  • Ability to create marketing and media solutions that bring together outstanding creativity with the benefits of technology.

Headwinds

  • The effects of a challenging economy on the demand for our advertising and marketing services, on our clients’ financial condition and on our business or financial condition.
  • The impacts of the novel coronavirus (COVID-19) pandemic and the measures to contain its spread
  • Our ability to attract new clients and retain existing clients
  • Our ability to retain and attract key employees
  • Failure to fully realize the anticipated benefits of our 2020 restructuring actions and other cost-saving initiatives.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

+1.0%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.8%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+13.6%

Q4 2010

Best reaction

-18.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025-2.0%-2.7%
Q2 2025+6.9%+8.5%+10.4%
Q1 2025+4.5%+4.3%+0.2%
Q4 2024-1.4%-0.4%-2.7%
Q3 2024-5.0%-5.4%-7.7%
Q2 2024+1.1%+5.0%+8.3%
Q1 2024+0.5%+1.4%+1.3%
Q4 2023-4.5%-1.6%+0.0%
Q3 2023-1.2%-2.9%+6.3%
Q2 2023-14.0%-13.5%-14.8%
Q1 2023-2.2%-2.5%+3.2%
Q4 2022-2.7%-1.5%-11.5%
Q3 2022+3.6%+7.2%+17.6%
Q2 2022-1.5%-4.1%+0.8%
Q1 2022-4.1%-2.3%-7.0%
Q4 2021-11.4%-8.0%-16.4%
Q3 2021-2.8%
Q2 2021+9.1%
Q1 2021+7.4%
Q4 2020-6.9%
Q3 2020+6.4%
Q2 2020+0.0%
Q1 2020+4.8%
Q4 2019+7.8%
Q3 2019+2.9%
Q2 2019-0.0%
Q1 2019+5.5%
Q4 2018+6.3%
Q3 2018+8.7%
Q2 2018+1.9%
Q1 2018-3.7%
Q4 2017+12.8%
Q3 2017-5.5%
Q2 2017-16.2%
Q1 2017-2.1%
Q4 2016+6.3%
Q3 2016+1.6%
Q2 2016-4.5%
Q1 2016+0.0%
Q4 2015+1.7%
Q3 2015+3.7%
Q2 2015+4.9%
Q1 2015-1.7%
Q4 2014+5.6%
Q3 2014+4.0%
Q2 2014+3.8%
Q1 2014+3.3%
Q4 2013-4.1%
Q3 2013-6.3%
Q2 2013-0.9%
Q1 2013+5.0%
Q4 2012+0.7%
Q3 2012-4.3%
Q2 2012-7.9%
Q1 2012+5.6%
Q4 2011+8.2%
Q3 2011+6.3%
Q2 2011-18.9%
Q1 2010-5.4%
Q1 2011+1.9%
Q4 2010+13.6%
Q4 2008+13.6%
Q3 2009-2.1%
Q3 2010-2.1%
Q2 2010+10.8%
Q4 2009+10.8%
Q2 2009+10.8%

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