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 o ...

Interpublic Group of Companies Inc. (NYSE:IPG) Q1 2025 Earnings Conference Call April 24, 2025 8:30 AM ET Company Participants Philippe Krakowsky - Chief Executive Officer Ellen Johnson - Chief Financial Officer Jerry Leshne - Senior Vice President, Investor Relations Conference Call Participants David Karnovsky - JP Morgan Jason Bazinet - Citi Cameron McVeigh - Morgan Stanley Michael Nathanson - MoffettNathanson Daniel Osley - Wells Fargo Julien Roch - Barclays Craig Huber - Huber Research Partners Operato ...

For the quarter ended March 2025, Interpublic Group (IPG) reported revenue of $2 billion, down 8.6% over the same period last year. EPS came in at $0.33, compared to $0.36 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2 billion, representing a surprise of -0.28%. The company delivered an EPS surprise of +10.00%, with the consensus EPS estimate being $0.30.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Financial Performance - Revenue before billable expenses for Q1 2025 was $1,996.3 million, a decrease of 8.5% compared to $2,182.9 million in Q1 2024[153]. - Total revenue for Q1 2025 was $2,322.6 million, down 6.9% from $2,495.9 million in Q1 2024[153]. - Adjusted EBITA for Q1 2025 was $(21.6) million, a decline of 110.5% from $204.9 million in Q1 2024[153]. - Net loss available to IPG common stockholders for Q1 2025 was $(85.4) million, compared to a net income of $110.4 million in Q1 2024[153]. - Organic change in revenue before billable expenses was down 3.6% in Q1 2025, compared to an increase of 1.3% in Q1 2024[153]. - Total revenue decreased by 6.9% in Q1 2025, with organic revenue before billable expenses down 3.6% compared to a 1.3% increase in Q1 2024[155]. - Adjusted EBITA margin on revenue before billable expenses fell to (1.1)% from 9.4% in the prior-year period, impacted by increased operating expenses[155]. - Net losses on sales of businesses amounted to $36.4 million in Q1 2025, primarily related to the sale of unprofitable digital agencies[176]. - For the three months ended March 31, 2025, the basic and diluted loss per share for IPG common stockholders was $0.23, a decrease from basic earnings per share of $0.29 for the same period in 2024[179]. - Revenue before billable expenses for the Media, Data & Engagement Solutions segment decreased to $888.8 million in Q1 2025, down 7.5% organically compared to $961.3 million in Q1 2024[183]. - The Integrated Advertising & Creativity Led Solutions segment reported a revenue decrease to $780.6 million in Q1 2025, reflecting a 10.3% organic decline from $881.4 million in Q1 2024[186]. - The Specialized Communications & Experiential Solutions segment's revenue before billable expenses fell to $326.9 million in Q1 2025, a 3.9% organic decrease from $340.2 million in Q1 2024[190]. - Segment EBITA for the Media, Data & Engagement Solutions segment was $75.6 million in Q1 2025, down 18.9% from $93.2 million in Q1 2024, with a margin decrease to 8.5%[184]. - The Integrated Advertising & Creativity Led Solutions segment experienced a significant EBITA loss of $1.5 million in Q1 2025, compared to a profit of $107.9 million in Q1 2024, marking a 101.4% decline[188]. - Corporate and Other expenses increased by $74.1 million to $114.2 million in Q1 2025, primarily due to higher selling, general and administrative expenses and restructuring charges[195]. - The company reported a net loss of $(85.3) million for Q1 2025, compared to a net income of $113.6 million in Q1 2024[197]. Restructuring and Charges - Restructuring charges for Q1 2025 totaled $203.3 million, affecting Adjusted EBITA margin by (10.2)%[156]. - The company expects total restructuring charges related to 2025 actions to be approximately $300 - $350 million, with completion anticipated by the end of 2025[168]. - The planned workforce reduction will affect approximately 1,500 employees across various departments[169]. - Restructuring charges amounted to $203.3 million in Q1 2025, compared to $0.6 million in Q1 2024, highlighting a significant increase in restructuring costs[230]. - The company incurred $4.8 million in deal costs related to the planned acquisition by Omnicom during Q1 2025[231]. Cash Flow and Financing - Net cash used in operating activities was $(37.0) million for Q1 2025, an improvement from $(157.4) million in Q1 2024[197]. - Net cash used in operating activities in Q1 2025 was $37.0 million, a decrease of $120.4 million from $157.4 million in Q1 2024, primarily due to a decrease in working capital usage of $254.2 million[202]. - Net cash used in investing activities in Q1 2025 was $58.2 million, an increase of $8.2 million compared to Q1 2024, driven by cash used for acquisitions of $48.4 million and a decrease in capital expenditures from $35.1 million to $21.5 million[203]. - Net cash used in financing activities in Q1 2025 was $248.0 million, up from $227.1 million in Q1 2024, mainly due to common stock dividends of $125.3 million and stock repurchases of $90.0 million[204]. - The effect of foreign exchange rate changes resulted in a net increase of $23.4 million in cash during Q1 2025, attributed to a weaker U.S. Dollar against several foreign currencies[205]. - The company expects cash flow from operations and existing cash to meet anticipated operating requirements for at least the next twelve months, supported by a commercial paper program and a committed corporate credit facility[206]. - As of March 31, 2025, the company had outstanding short-term borrowings of $34.0 million from uncommitted lines of credit, with an average outstanding amount of $44.1 million at a weighted-average interest rate of approximately 7.2%[217]. - The company paid a quarterly cash dividend of $0.330 per share in Q1 2025, totaling $125.3 million, with an expected annual payout of approximately $489.0 million assuming no significant change in outstanding shares[213]. - The company maintains a committed corporate credit facility with a total lending limit of $1,500.0 million, with no borrowings under the facility as of March 31, 2025[214]. - As of April 17, 2025, the company's debt credit ratings were Baa2+ from Moody's, BBB+ from S&P, and BBB+ from Fitch, with a positive outlook from Moody's and S&P[221]. - Approximately 99% of the company's debt obligations bore fixed interest rates as of March 31, 2025, indicating a stable interest rate exposure[233]. - There has been no significant change in the company's exposure to market risk during the first quarter of 2025[233]. Merger and Strategic Initiatives - The company entered into a merger agreement with Omnicom Group Inc. on December 8, 2024, with IPG becoming a wholly owned subsidiary of Omnicom[138]. - Following the merger, Omnicom shareholders will own 60.6% of the combined company, while IPG shareholders will own 39.4% on a fully diluted basis[140]. - The merger is subject to customary closing conditions, including regulatory approvals, and has faced scrutiny from the U.S. Federal Trade Commission[142][144]. - The company continues to invest in strategic areas such as digital commerce, artificial intelligence, and audience resolution to adapt to a rapidly evolving market[134]. - The global macroeconomic environment remains complex, with risks including economic slowdowns and inflation impacting client spending[145][146].

Financial Performance - Total revenue for Q1 2025 was $2.32 billion, a decrease from $2.50 billion in Q1 2024[11] - Net revenue before billable expenses was $2.00 billion, reflecting an 8.5% decrease year-over-year, driven by a 3.6% organic decrease and a 1.2% negative impact from foreign currency translation[11][13] - The reported net loss was $85.4 million, resulting in a diluted loss per share of $0.23, compared to earnings of $0.29 per share in Q1 2024[18] - Total revenue for the three months ended March 31, 2025, was $2,322.6 million, a decrease of 6.9% compared to $2,495.9 million in the same period of 2024[38] - Operating income for the same period was a loss of $42.0 million, compared to a profit of $184.2 million in 2024, reflecting a significant decline[38] - Net income available to IPG common stockholders was a loss of $85.4 million, down from a profit of $110.4 million in the prior year[44] - Basic and diluted earnings per share for the three months ended March 31, 2025, were both $(0.23), compared to $0.29 in the same period of 2024[38] - Revenue before billable expenses decreased to $1,996.3 million, down 8.5% from $2,182.9 million in the same quarter of 2024[44] Restructuring and Charges - Restructuring charges in Q1 2025 amounted to $203.3 million, aimed at transforming the business and enhancing service offerings[20] - Restructuring charges for the quarter amounted to $203.3 million, significantly higher than $0.6 million in the previous year, indicating substantial restructuring efforts[41] Cash and Shareholder Returns - Cash and cash equivalents totaled $1.87 billion as of March 31, 2025, down from $2.19 billion at the end of 2024[23] - The company repurchased 3.4 million shares at an aggregate cost of $90.0 million during Q1 2025[24] - A common stock cash dividend of $0.330 per share was declared and paid, totaling $125.3 million for the quarter[25] - The company declared dividends of $0.330 per common share, consistent with the previous year[38] Future Outlook - The company forecasts an organic revenue decrease of 1% to 2% for the full year 2025, with an adjusted EBITA margin target of 16.6%[7] - The merger with Omnicom is expected to close in the second half of 2025, positioning the combined entity for growth in a changing environment[7] Operating Expenses - Total operating expenses increased to $2,364.6 million, up 2.3% from $2,311.7 million in the previous year[38] Adjusted EBITA - Adjusted EBITA before restructuring charges was $186.5 million, with a margin of 9.3% on revenue before billable expenses[5][11] - Adjusted EBITA before restructuring charges and deal costs was $186.5 million, slightly down from $205.5 million in the prior year, with a margin of 9.3%[44]

Core Viewpoint - Interpublic Group (IPG) is expected to report its first-quarter 2025 results on April 24, with a consensus estimate indicating a decline in both revenues and earnings per share compared to the previous year [1][4]. Revenue Expectations - The Zacks Consensus Estimate for IPG's revenues is projected at $2 billion, reflecting an 8.3% decrease from the same quarter last year [4]. - Revenue projections for the Media, Data & Engagement Solutions (MD&E) segment are estimated at $927.5 million, indicating a 4.7% decline year-over-year [4]. - Integrated Advertising & Creativity Led Solutions (IA&C) revenues are expected to be $850 million, representing an 11.8% fall from the first quarter of 2024 [5]. - Specialized Communications Experiential Solutions (SC&E) revenues are anticipated to be $544.9 million, implying a 2.5% decline from the previous year [5]. Earnings Expectations - The consensus estimate for earnings per share is set at 30 cents, suggesting a 16.7% decrease from the year-ago quarter [4]. - EBITA for the MD&E segment is expected to increase by 54.8% year-over-year to $144.3 million [6]. - The IA&C segment's EBITA is projected to decline by 3% to $104.6 million, while SC&E's EBITA is anticipated to rise by 10.3% to $48.4 million [6]. - The Corporate and Other segment is likely to report an EBITA of negative $27.6 million, an improvement from negative $40.1 million reported in the same quarter last year [6]. Earnings Prediction Model - The current model does not predict an earnings beat for IPG, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 [7][8].

For Immediate ReleaseChicago, IL – April 17, 2025 – Today, Zacks Equity Research Equity are IPG Photonics (IPGP) and MicroVision (MVIS) .Industry: Laser SystemsLink: https://www.zacks.com/commentary/2449999/2-laser-systems-stocks-to-watch-from-a-challenging-industryThe Zacks Laser Systems and Components industry participants are suffering from challenging macroeconomic conditions globally. U.S. President Donald Trump’s decision to levy tariffs on trade partners, including China, Mexico and Canada, has incre ...

Strengthening its Commitment to Innovation, IP-Led Growth and Applied AI for Brand ExperienceNew York, NY, April 15, 2025 (GLOBE NEWSWIRE) -- Momentum Worldwide, a global experiential marketing agency that is part of Interpublic Group (NYSE: IPG), has announced the appointment of Jason Alan Snyder as its first-ever Global Chief AI Officer, marking a transformative move in the agency’s commitment to delivering intelligent brand systems through responsible innovation. Snyder, who currently serves as Chief Te ...

Core Insights - Primis is expanding its partnership with HUMAN Security to enhance its ad fraud defense capabilities, focusing on pre-bid detection and mitigation to improve marketplace integrity [1][2] - The transition to a proactive pre-bid filtering approach with HUMAN's MediaGuard will allow Primis to analyze bid requests before initiation, preventing invalid traffic from entering its marketplace [2][3] - This collaboration aims to provide greater transparency, value, and performance for all partners involved in the digital advertising ecosystem [2][3] Company Overview - Primis is a leader in Video Discovery, helping publishers increase revenue through a video ad monetization platform that reaches over 450 million unique users monthly [4] - The company is trusted by more than 200 digital publishers and focuses on delivering a personalized, engagement-driven experience [4] - Primis also created Sellers.guide, a free tool for managing ads.txt files, promoting transparency and efficiency in programmatic advertising [5] Industry Impact - The implementation of HUMAN's pre-bid filtering is seen as a significant advancement in reducing ad fraud, thereby enhancing trust in programmatic advertising [3] - By integrating HUMAN's technology, Primis aims to strengthen the integrity of its ad inventory, providing added value to clients and reinforcing industry standards [3][4]

New York, NY, April 10, 2025 (GLOBE NEWSWIRE) -- Interpublic Group (NYSE:IPG) today announced that it will release earnings for the first quarter ended March 31, 2025 on the morning of April 24, 2025. Following the release, the company will hold a conference call for investors at 8:30 a.m. Eastern Time on the same day to review results. To join the conference call, please call (888) 790-3345. Outside the United States, please call (517) 308-9030. The participant passcode is 6037460. The call will be availab ...