NYSE$IPG

Interpublic Group of Companies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Interpublic Group reported strong second quarter results driven by broad-based growth across world regions and client sectors.

Interpublic Group announced its second quarter results with a net revenue of $2.38 billion, a 4.7% increase year-over-year, and an organic growth of 7.9%. The company's net income was $229.6 million, with an adjusted EBITA of $370.1 million and a margin of 15.6% on net revenue. Diluted EPS was $0.58 as reported and $0.63 as adjusted. The company expects FY22 organic growth to exceed 6.5% and to deliver a 16.6% adjusted EBITA margin for the year.

  • Net revenue increased by 4.7% to $2.38 billion compared to the previous year.
  • Organic net revenue increased by 7.9%, with 8.3% growth in the U.S. and 7.1% internationally.
  • Net income reached $229.6 million, resulting in diluted EPS of $0.58, while adjusted EPS was $0.63.
  • The company anticipates full-year organic growth exceeding 6.5% and an adjusted EBITA margin of 16.6%.

Headline financials

Total Revenue

$2.74B

Previous: $2.51B+9.0%
EPS (adj)

$0.63

Previous: $0.70-10.0%
Organic Net Revenue Growth

7.9%

Previous: 19.8%-60.1%
Adjusted EBITA Margin

15.6%

Previous: 17.9%-12.8%
Capital Expenditures

-$41.6M

Previous: -$33.8M-23.1%
Free Cash Flow

-$766M

Previous: $185M-515.0%
Net Income

$230M

Previous: $263M-12.8%
Operating Income

$349M

Previous: $384M-9.2%
Gross Profit

$436M

Previous: $484M-10.0%
Cash & Equivalents

$1.98B

Previous: $2.34B-15.3%
Total Assets

$17.2B

Previous: $17.3B-0.4%
Stock-Based Comp

$12.8M

Previous: $21.9M-41.6%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.74B

Q2 2022+9%vs Q2 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

The Company expects FY22 organic growth to exceed 6.5% and to deliver 16.6% adjusted EBITA margin for the year.

Tailwinds

  • The company expects FY22 organic growth to exceed 6.5%.
  • The company expects to deliver 16.6% adjusted EBITA margin for the year.
  • Company highlights strength of talent.
  • Company highlights strength of resources.
  • Company highlights strength of differentiated solutions.

Headwinds

  • Facing a period of macroeconomic uncertainty.
  • Facing a period of geopolitical uncertainty.
  • Limited visibility that comes with such an environment.
  • Increased headcount from a year ago required to support strong 11.4% organic growth over the trailing twelve months.
  • Impact of the pandemic on our operating expenses a year ago, when certain expenses were at a historically low levels.

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 Q2 2022

Historical avgQ2 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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