NYSE$IPG

Interpublic Group of Companies Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Interpublic Group's Q3 2022 performance was marked by solid revenue growth across all regions, driven by contributions from various segments, agencies, and marketing disciplines.

Interpublic Group announced its third-quarter results for 2022, reporting a 1.5% increase in revenue before billable expenses, reaching $2.30 billion. The company's organic growth was 5.6%. Net income for the quarter was $251.8 million, with an adjusted EBITA before restructuring charges of $356.2 million, representing a 15.5% margin on revenue before billable expenses. The company has upgraded its full-year 2022 organic growth expectation to 7% and expects to achieve an adjusted EBITA margin of 16.6%.

  • Third quarter revenue before billable expenses was $2.30 billion, an increase of 1.5% from a year ago.
  • Third quarter organic growth was 5.6%.
  • Third quarter net income was $251.8 million.
  • The company upgraded FY-22 performance outlook, expecting organic growth of 7% and adjusted EBITA margin of 16.6%.

Headline financials

Total Revenue

$2.64B

Previous: $2.54B+3.8%
EPS (adj)

$0.63

Previous: $0.63+0.0%
Organic Net Revenue Growth

5.6%

Previous: 15.0%-62.7%
Adjusted EBITA Margin

15.5%

Previous: 16.3%-4.9%
Capital Expenditures

-$46.2M

Previous: -$61.3M+24.6%
Free Cash Flow

-$705M

Previous: $547M-228.8%
Net Income

$252M

Previous: $240M+5.0%
Operating Income

$342M

Previous: $352M-2.8%
Gross Profit

$422M

Previous: $450M-6.3%
Cash & Equivalents

$1.77B

Previous: $2.49B-29.0%
Total Assets

$16.9B

Previous: $17.8B-5.2%
Stock-Based Comp

$12.7M

Previous: $15.7M-19.1%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.64B

Q3 2022+3.8%vs Q3 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Despite heightened macroeconomic and geopolitical uncertainty, the company is upgrading its expectation for organic growth for the full year to 7%. With growth at that level, they expect to achieve adjusted EBITA margin of 16.6%.

Tailwinds

  • Upgrading expectation for organic growth for the full year to 7%.
  • Expect to achieve adjusted EBITA margin of 16.6%.
  • Embedding digital across the portfolio.
  • Adding a layer of data and tech to our offerings.
  • Commitment to strong agency brands and industry-leading talent.

Headwinds

  • Heightened macroeconomic uncertainty
  • Geopolitical uncertainty
  • Challenging economy on the demand for advertising and marketing services
  • Clients’ financial condition
  • Impacts of the COVID-19 pandemic

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 Q3 2022

Historical avgQ3 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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