Interpublic Group Earnings Surpass Estimates in Q1, Revenues Fall Y/Y

The Interpublic Group of Companies, Inc. IPG has reported mixed first-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year and outpaced the Zacks Consensus Estimate of $2 billion.

IPG shares have declined 19.5% in a year compared with the 23.8% decline of the industry it belongs to and against the Zacks S&P 500 composite’s rise of 8.5%.

Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise

Interpublic Group's Q1 Operating Results

The operating loss in the quarter was $42.7 million against an operating income of $184.2 million in the year-ago quarter. The metric missed our estimate of $254.2 million.

Adjusted EBITA was $186.5 million, decreasing 9.2% on a year-over-year basis and missing our estimate of $269.7 million. The adjusted EBITA margin on net revenues was 9.3%, down 10 basis points from the year-ago quarter. The figure missed our projection of 11.6%.

Balance Sheet & Cash Flow of IPG

Interpublic Group ended the quarter with a cash and cash equivalent balance of $1.9 billion compared with $2.2 billion at the end of the previous quarter. Total debt was $3 billion, flat with the preceding quarter.

The company paid out a common stock cash dividend of 33 cents per share to $125.3 million.

Interpublic Group's 2025 Guidance

IPG expects 2025 organic net revenues to grow 1-2% year over year. The adjusted EBITA margin is anticipated to be 16.6%.

Interpublic Group carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots

FactSet FDS reported the results for the second quarter of fiscal 2025.

FDS’s earnings per share (excluding 52 cents from non-recurring items) of $4.28 beat the consensus mark by 2.2% and increased 1.4% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Revenues of $570.7 met the Zacks Consensus Estimate but gained 4.5% from the year-ago quarter.

Paychex, Inc. PAYX posted impressive third-quarter fiscal 2025 results.

PAYX’s fiscal third-quarter earnings of $1.49 per share beat the Zacks Consensus Estimate by a slight margin and increased 8% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by a slight margin and gained 4.9% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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