Interpublic Group of Companies Inc. Earnings: Narrows Loss Slightly

S&P 500 (NYSE:SPY) component Interpublic Group of Companies Inc. (NYSE:IPG) reported its results for the first quarter. The Interpublic Group of Companies 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 First Quarter

Results: Loss narrowed to $43 million (loss of 10 cents per diluted share) from $45.2 million (loss of 10 cents per share) in the same quarter a year earlier.

Revenue: Rose 2.2% to $1.51 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Interpublic Group of Companies Inc. fell in line with the mean analyst estimate of a loss of 10 cents per share. Analysts were expecting revenue of $1.5 billion.

Quoting Management: “Our performance during the first quarter was solid and represents a good start in meeting our goals for 2012. Organic revenue growth of 2.8% on top of an industry-leading first quarter last year demonstrates that our agencies are highly competitive in the marketplace,” said Michael I. Roth, Interpublic Chairman and CEO. “We continue to see significant contributions from our digital capabilities – both those embedded within our agencies across all marketing disciplines and at our digital specialist companies – as well as from operations in high growth geographic markets.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 3% to $2.07 billion in the fourth quarter of the last fiscal year. The figure rose 10.6% in the third quarter of the last fiscal year from the year earlier and climbed 7.6% in the second quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 10 cents, and in the third quarter of the last fiscal year, it was ahead by 6 cents.

After three consecutive quarters of profits, the company declared a loss in the latest quarter. The company reported a profit of $261.9 million in the fourth quarter of the last fiscal year, a profit of $211 million in the third quarter of the last fiscal year and $104.6 million in the second of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 20 cents a share to 21 cents over the last ninety days. For the fiscal year, the average estimate has moved up from 77 cents a share to 82 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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