NYSE$IPG

Interpublic Group of Companies Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a strong start to the year with revenue and earnings growth.

Interpublic Group announced strong Q1 2022 results, with net revenue of $2.23 billion, a 9.8% increase year-over-year, and organic net revenue growth of 11.5%. Net income was $159.4 million, and adjusted EBITA before restructuring charges was $273.6 million with a 12.3% margin. The company updated its full-year organic revenue growth outlook to approximately 6% and reiterated its expectation for an adjusted EBITA margin of 16.6%.

  • Net revenue increased by 9.8% to $2.23 billion.
  • Organic net revenue growth was 11.5%, with 12.2% growth in the U.S. and 10.2% internationally.
  • Net income was $159.4 million, with diluted EPS of $0.40 as reported and $0.47 as adjusted.
  • Adjusted EBITA before restructuring charges was $273.6 million, with a margin of 12.3%.

Headline financials

Total Revenue

$2.57B

Previous: $2.26B+13.8%
EPS (adj)

$0.47

Previous: $0.45+4.4%
Organic Net Revenue Growth

11.5%

Previous: 1.9%+505.3%
Adjusted EBITA Margin

12.3%

Previous: 13.1%-6.1%
Capital Expenditures

-$30.7M

Previous: -$28.3M-8.5%
Free Cash Flow

-$664M

Previous: -$278M-138.9%
Net Income

$159M

Previous: $91.7M+73.8%
Operating Income

$246M

Previous: $243M+1.1%
Gross Profit

$339M

Previous: $342M-0.7%
Cash & Equivalents

$2.4B

Previous: $2.02B+19.2%
Total Assets

$17.9B

Previous: $16.3B+9.4%
Stock-Based Comp

$12.5M

Previous: $20.3M-38.4%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.57B

Q1 2022+13.8%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

The company is updating its outlook for the year, from the previously-announced expectation for 5% organic revenue growth in 2022 to approximately 6%, and reiterating its expectation for adjusted EBITA margin of 16.6% for the full year.

Tailwinds

  • Updating outlook for the year to approximately 6% organic revenue growth.
  • Re-iterating expectation for adjusted EBITA margin of 16.6% for the full year.
  • Strong revenue growth over the course of 2021 and in the first quarter of 2022.
  • The tone of the business remains positive.
  • Commitment to client partners.

Headwinds

  • Macro uncertainty is still elevated as a result of geopolitical and public health issues.
  • Effects of a challenging economy on the demand for advertising and marketing services.
  • Impacts of the COVID-19 pandemic.
  • Fluctuations in interest rates, inflation rates and currency exchange rates.
  • Cybersecurity events.

Historical earnings impact

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

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+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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