NYSE$IPG

Interpublic Group of Companies Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

IPG reported a solid second quarter, marked by growth acceleration and margin expansion.

Interpublic Group reported a moderate acceleration of growth and margin expansion in the second quarter of 2024. Organic growth before billable expenses was 1.7%, bringing first-half organic growth to 1.5%. The adjusted EBITA margin improved to 14.6%.

  • Second-quarter organic growth before billable expenses was 1.7%, with first-half organic growth at 1.5%.
  • Adjusted EBITA margin for the second quarter was 14.6%, up 40 basis points year-over-year.
  • Diluted earnings per share were $0.57 as reported, and $0.61 as adjusted.
  • The company repurchased 2.2 million shares during the quarter, returning $68 million to shareholders.

Headline financials

Total Revenue

$2.71B

Previous: $2.67B+1.6%
EPS

$0.57

Previous: $0.74-23.0%
Adjusted EBITA Margin

14.6%

Previous: 14.2%+2.8%
Staff Cost Ratio

66.9%

No prior period
Capital Expenditures

-$34.8M

Previous: -$46.4M+25.0%
Free Cash Flow

-$71.5M

Previous: -$629M+88.6%
Net Income

$215M

Previous: $266M-19.2%
Operating Income

$318M

Previous: $311M+2.4%
Gross Profit

$411M

Previous: $389M+5.6%
Cash & Equivalents

$1.55B

Previous: $1.63B-5.1%
Total Assets

$17B

Previous: $17.1B-0.6%
Stock-Based Comp

$18.1M

Previous: $12.8M+41.4%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.71B

Q2 2024+1.6%vs Q2 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

IPG expects to achieve approximately 1% organic growth for the full year and continues to target an adjusted 2024 EBITA margin of 16.6%.

Tailwinds

  • Data and tech-driven media offerings positioned for continued strong performance.
  • Specialist healthcare marketing expertise expected to maintain growth.
  • PR and experiential marketing capabilities anticipated to remain strong.
  • Focus on new business pipeline.
  • Acceleration of new capabilities in areas such as retail media and commerce.

Headwinds

  • Modest incremental uncertainty in the macro environment.
  • Uncertainty in domestic consumer sentiment.
  • Challenges faced by certain agencies may weigh on results.
  • Shift in the media landscape to principal buying could lead to losses.
  • Recent losses that will weigh on our results, particularly as we head into 2025.

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 2024

Historical avgQ2 2024

+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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