Interpublic Group of Companies Inc. Earnings Cheat Sheet: Sees Profit Move Up

S&P 500 (NYSE:SPY) component Interpublic Group of Companies Inc. (NYSE:IPG) reported its results for the second quarter. The Interpublic Group of Companies, Inc. is an advertising and marketing services company that specializes in consumer advertising, interactive marketing and media planning.

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Interpublic Group of Companies Earnings Cheat Sheet for the Second Quarter

Results: Net income for Interpublic Group of Companies Inc. rose to $104.6 million (19 cents per share) vs. $82.5 million (15 cents per share) in the same quarter a year earlier. This marks a rise of 26.8% from the year earlier quarter.

Revenue: Rose 7.6% to $1.74 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: IPG fell short of the mean analyst estimate of 20 cents per share. Analysts were expecting revenue of $1.75 billion.

Quoting Management: “The strength of our professional offerings is evident in our 6.8% organic revenue growth for the first half of the year, despite very challenging comparisons. For the six months, all geographic world regions and all of our major global networks posted organic growth,” said Michael I. Roth, Interpublic’s Chairman and CEO. “Profitability in the second quarter reflects that our current results compare to a second quarter of 2010 that saw very strong revenue gains, but low expense growth as well as continued investment behind growth areas of our business. Our focus for the balance of this year will be on margin enhancement. We remain confident that we will achieve our full year 2011 target of 4-5% organic growth, deliver at least 9.5% operating margin and further enhance shareholder value.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 10% to $1.47 billion in the first quarter. The figure rose 11.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by 5 cents.

Competitors to Watch: Omnicom Group Inc. (NYSE:OMC), MDC Partners Inc. (NASDAQ:MDCA), Lamar Advertising Company (NASDAQ:LAMR), Charm Communications Inc (NASDAQ:CHRM), Focus Media Holding Ltd. (NASDAQ:FMCN), Inuvo, Inc. (AMEX:INUV), National CineMedia, Inc. (NASDAQ:NCMI), interCLICK Inc (NASDAQ:ICLK), and ValueClick, Inc. (NASDAQ:VCLK).

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(Source: Xignite Financials)