NYSE$IPG

Interpublic Group of Companies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Interpublic Group's Q2 2021 earnings showcased resilience and a remarkable rebound, marking the largest second quarter in the company's history.

Interpublic Group reported strong Q2 2021 results, demonstrating resilience and a remarkable rebound from the pandemic's impact. The company's net organic revenue growth was 19.8%, with double-digit growth rates around the world. The adjusted EBITA margin on net revenue was 17.9%.

  • Net organic revenue growth in the second quarter was 19.8%.
  • Adjusted EBITA was $405.8 million and adjusted EBITA margin on net revenue was 17.9%.
  • Diluted earnings per share was $0.66 as reported and $0.70 as adjusted.
  • The company upgraded its full-year organic growth outlook to 9% to 10% and adjusted EBITA margin to approximately 16.0%.

Headline financials

Total Revenue

$2.51B

Previous: $2.03B+23.9%
EPS (adj)

$0.70

Previous: $0.23+204.3%
Organic Net Revenue Growth

19.8%

Previous: -9.9%+300.0%
Adjusted EBITA Margin

17.9%

Previous: 3.4%+426.5%
Capital Expenditures

-$33.8M

Previous: -$27.3M-23.8%
Free Cash Flow

$185M

Previous: -$392M+147.2%
Net Income

$263M

Previous: -$45.6M+677.4%
Operating Income

$384M

Previous: $40.5M+849.1%
Gross Profit

$484M

Previous: $230M+110.0%
Cash & Equivalents

$2.34B

Previous: $1.09B+115.6%
Total Assets

$17.3B

Previous: $14.9B+16.3%
Stock-Based Comp

$21.9M

Previous: $12.6M+73.8%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.51B

Q2 2021+23.9%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

The company expects to deliver organic growth for the full year of 9% to 10%, and achieve 2021 adjusted EBITA margin of approximately 16.0%.

Tailwinds

  • Continued progress on public health issues.
  • Reasonably steady course of macro recovery.
  • People continue to become vaccinated to protect themselves and their communities.
  • The company is able to adequately mitigate the impact of dangerous new variants.
  • The company is well-positioned to enhance value for all of its stakeholders.

Headwinds

  • COVID pandemic and the related risks to the macro environment are not yet behind us.
  • Lagging vaccination rates in many parts of the world.
  • Emergence of new variants may entail higher COVID risks.
  • Potential deterioration on the public health front.
  • Increase in travel costs in the fourth quarter, which could return to levels consistent with what we saw in the fourth quarter of 2019.

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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