NYSE$IPG

Interpublic Group of Companies Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Interpublic Group's Q4 results were driven by strong performance in media and healthcare, but were partially offset by challenges in the tech & telecom sector and digital specialist agencies.

Interpublic Group reported Q4 revenue of $2.59 billion, representing a 1.4% increase year-over-year. Organic growth for the quarter was 1.7%. The adjusted EBITA margin was 24.3%, and the diluted earnings per share was $1.18.

  • Organic growth in the quarter was 1.7%, on top of 3.8% a year ago.
  • Adjusted EBITA margin on net revenue was 24.3% in the quarter, an increase of 200 basis points from a year ago.
  • Fourth-quarter net income as reported was $463.2 million.
  • Fourth-quarter diluted earnings per share was $1.21 as reported, and $1.18 as adjusted.

Headline financials

Total Revenue

$3.02B

Previous: $2.55B+18.5%
EPS (adj)

$1.18

Previous: $1.02+15.7%
Adjusted EBITA Margin

24.3%

Previous: 22.3%+9.0%
Capital Expenditures

$52.2M

Previous: $59.6M-12.4%
Net Income

$463M

Previous: $306M+51.4%
Operating Income

$607M

Previous: $445M+36.5%
Gross Profit

$631M

Previous: $648M-2.7%
Stock-Based Comp

$10.7M

Previous: $12M-10.8%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$3.02B

Q4 2023+18.5%vs Q4 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

IPG expects organic net revenue growth for 2024 in a range of 1% to 2%. The company anticipates a full-year adjusted EBITA margin of 16.6%.

Tailwinds

  • Building on significant new business success in the past year.
  • Strongest and most consistent growth areas of our business, such as our data and tech-driven media offerings, healthcare marketing expertise, PR and experiential marketing capabilities, will continue to perform well in the year ahead.
  • Proven operational discipline will stay in effect.
  • Investment in further development of our contemporary addressable capabilities.
  • Streamlining operations and processes across the Group.

Headwinds

  • Continued economic and geopolitical uncertainty.
  • Some client conservatism.
  • Quarter-to-quarter stability in the tech & telco sector, however, a return to growth for us in this sector has not been factored into our plan for 2024.
  • Addressing challenges in some of our legacy and digital specialists.
  • Investments in addressable capabilities, retail media, artificial intelligence, as well as building new buying models within Mediabrands.

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 Q4 2023

Historical avgQ4 2023

+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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