NYSE$IPG

Interpublic Group of Companies Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Interpublic Group's third quarter performance was highlighted by strong revenue growth across all regions and operating segments, driven by broad-based contributions from agencies and client sectors. The company increased its financial objectives for the full year, expecting organic growth of approximately 11% and an adjusted EBITA margin of approximately 16.8%.

Interpublic Group reported a strong third quarter with a 15.7% increase in net revenue to $2.26 billion and 15.0% organic growth. Net income was $239.9 million, and adjusted EBITA before restructuring charges was $369.5 million, with a margin of 16.3%. Diluted EPS was $0.60 as reported, and $0.63 as adjusted.

  • Net revenue for the third quarter was $2.26 billion, a 15.7% increase year-over-year, with organic growth of 15.0%.
  • Net income reached $239.9 million, with an adjusted EBITA before restructuring charges of $369.5 million and a margin of 16.3%.
  • Third quarter diluted EPS was $0.60 as reported, and $0.63 as adjusted, compared to $0.53 a year ago.
  • The company upgraded its full-year 2021 financial performance expectation to approximately 11.0% organic growth and an adjusted EBITA margin of approximately 16.8%.

Headline financials

Total Revenue

$2.54B

Previous: $2.13B+19.6%
EPS (adj)

$0.63

Previous: $0.53+18.9%
Organic Net Revenue Growth

15.0%

Previous: -3.7%+505.4%
Adjusted EBITA Margin

16.3%

Previous: 16.2%+0.6%
Capital Expenditures

-$61.3M

Previous: -$40.1M-52.9%
Free Cash Flow

$547M

Previous: $285M+92.0%
Net Income

$240M

Previous: $280M-14.2%
Operating Income

$352M

Previous: $249M+41.4%
Gross Profit

$450M

Previous: $377M+19.3%
Cash & Equivalents

$2.49B

Previous: $1.63B+52.9%
Total Assets

$17.8B

Previous: $16.1B+10.8%
Stock-Based Comp

$15.7M

Previous: $20.6M-23.8%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.54B

Q3 2021+19.6%vs Q3 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

Based on expectations of a reasonably steady course of improvement in the public health situation and attendant global economic recovery, the company expects to deliver organic growth for the year of approximately 11% and achieve an adjusted EBITA margin of approximately 16.8%.

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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