NYSE$IPG

Interpublic Group of Companies Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Interpublic Group (IPG) reported a decline in revenue for Q4 2024, with total revenue reaching $2.86 billion, a decrease of 5.5% compared to Q4 2023. Revenue before billable expenses stood at $2.43 billion, down 5.9% year-over-year. Net income for the quarter was $344.5 million, with adjusted EBITA before restructuring charges and deal costs at $591.2 million, reflecting a margin of 24.3%. Adjusted earnings per share came in at $1.11, while reported EPS was $0.92.

Headline financials

Total Revenue

$2.86B

Previous: $3.02B-5.4%
EPS (adj)

$1.11

Previous: $1.18-5.9%
Organic Net Revenue Growth

-1.8%

No prior period
Adjusted EBITA Margin

24.3%

Previous: 24.3%+0.0%
Capital Expenditures

-$34.6M

Previous: $52.2M-166.3%
Net Income

$345M

Previous: $463M-25.6%
Operating Income

$568M

Previous: $607M-6.4%
Gross Profit

$606M

Previous: $631M-4.0%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.86B

Q4 2024-5.4%vs Q4 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

IPG forecasts an organic revenue decline of 1% to 2% for FY 2025 due to continued client losses and challenges in the media trading environment. The company is implementing a business transformation plan aimed at enhancing efficiency and achieving $250 million in cost savings.

Tailwinds

  • Strong margin management despite revenue decline
  • Business transformation plan targeting $250M in cost savings
  • Continued investment in technology and emerging capabilities
  • Strategic centralization of corporate functions for efficiency
  • Forecasting stable adjusted EBITA margin for 2025

Headwinds

  • Revenue expected to decline by 1% to 2% in FY 2025
  • Client losses impacting financial performance
  • Challenging media trading environment
  • Ongoing industry evolution requiring structural changes
  • Merger-related uncertainties with Omnicom

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 2024

Historical avgQ4 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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