Core Insights - Interpublic Group (IPG) reported revenue of $2.18 billion for Q1 2024, reflecting a 0.3% increase year-over-year and a surprise of +0.39% over the Zacks Consensus Estimate of $2.17 billion [1] - Earnings per share (EPS) for the quarter was $0.36, unchanged from the consensus estimate but down from $0.38 in the same quarter last year [1] Revenue Performance - Revenue before billable expenses from International operations was $706.60 million, slightly above the average estimate of $698.27 million, with no year-over-year change [2] - Domestic revenue before billable expenses was $1.48 billion, matching analyst estimates and showing a +0.4% change from the previous year [2] - Revenue before billable expenses from Asia Pacific was $142.80 million, below the average estimate of $164.79 million, representing a -10.3% year-over-year decline [2] - Revenue before billable expenses from Other International regions was $119.20 million, exceeding the estimate of $96.45 million, but down -7.2% year-over-year [2] - Revenue before billable expenses from Continental Europe was $179.50 million, surpassing the estimate of $175.11 million, with a +9.7% year-over-year increase [2] - Revenue before billable expenses from the United Kingdom was $178 million, above the estimate of $174.84 million, reflecting a +4.6% year-over-year increase [2] - Revenue before billable expenses from Latin America was $87.10 million, below the estimate of $94.81 million, but showing a +2.8% change from the previous year [2] Stock Performance - Interpublic shares have returned -3.3% over the past month, slightly underperforming the Zacks S&P 500 composite's -3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for Q1 2024 show a slight decrease in total revenue and net income compared to Q1 2023, with reduced total assets and a net cash outflow from operations Q1 2024 vs Q1 2023 Consolidated Statements of Operations Highlights | Metric | Q1 2024 ($M) | Q1 2023 ($M) | Change | | :--- | :--- | :--- | :--- | | Revenue before billable expenses | 2,182.9 | 2,176.9 | +0.3% | | Total revenue | 2,495.9 | 2,521.0 | -1.0% | | Operating Income | 184.2 | 188.3 | -2.2% | | Net Income Available to IPG Common Stockholders | 110.4 | 126.0 | -12.4% | | Diluted EPS | $0.29 | $0.33 | -12.1% | Consolidated Balance Sheet Highlights | Metric | March 31, 2024 ($M) | Dec 31, 2023 ($M) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 1,931.2 | 2,386.1 | -19.1% | | Total Assets | 17,286.1 | 19,267.3 | -10.3% | | Total Liabilities | 13,367.0 | 15,221.2 | -12.2% | | Total Stockholders' Equity | 3,883.1 | 4,003.8 | -3.0% | Q1 2024 vs Q1 2023 Consolidated Statements of Cash Flows Highlights | Metric | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | Net cash used in operating activities | (157.4) | (547.6) | | Net cash used in investing activities | (50.0) | (34.7) | | Net cash used in financing activities | (227.1) | (274.3) | | Net decrease in cash | (454.5) | (866.3) | [Note 2: Revenue](index=11&type=section&id=Note%202%3A%20Revenue) Revenue before billable expenses remained flat at $2.18 billion, with growth in the US and Continental Europe offset by a decline in the Asia Pacific region Revenue Before Billable Expenses by Geography (Q1 2024 vs Q1 2023) | Region | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | United States | 1,476.3 | 1,470.6 | | United Kingdom | 178.0 | 170.2 | | Continental Europe | 179.5 | 163.7 | | Asia Pacific | 142.8 | 159.2 | | Latin America | 87.1 | 84.7 | | Other | 119.2 | 128.5 | | **Total International** | **706.6** | **706.3** | | **Total Consolidated** | **2,182.9** | **2,176.9** | Revenue Before Billable Expenses by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | MD&E | 961.3 | 965.9 | | IA&C | 881.4 | 870.5 | | SC&E | 340.2 | 340.5 | [Note 3: Debt and Credit Arrangements](index=13&type=section&id=Note%203%3A%20Debt%20and%20Credit%20Arrangements) Total long-term debt was stable at $3.17 billion, and the company maintained significant liquidity with an undrawn $1.5 billion credit facility after repaying matured notes - Total long-term debt stood at **$3,168.6 million** as of March 31, 2024[42](index=42&type=chunk) - The **$250.0 million 4.200% Senior Notes** due in 2024 matured on April 15, 2024, and were repaid using cash on hand[43](index=43&type=chunk) - The company has a **$1.5 billion revolving credit facility** maturing in November 2026, with no borrowings outstanding as of March 31, 2024, and availability of **$1,490.5 million**[46](index=46&type=chunk) [Note 10: Segment Information](index=20&type=section&id=Note%2010%3A%20Segment%20Information) The IA&C and MD&E segments drove EBITA growth, with IA&C being the largest contributor, while increased corporate expenses led to a slight decline in total Segment EBITA Segment EBITA (Q1 2024 vs Q1 2023) | Segment | Q1 2024 ($M) | Q1 2023 ($M) | Change | | :--- | :--- | :--- | :--- | | MD&E | 93.2 | 79.8 | +16.8% | | IA&C | 107.9 | 98.1 | +10.0% | | SC&E | 43.9 | 45.2 | -2.9% | | Corporate and Other | (40.1) | (13.9) | -188.5% | | **Total** | **204.9** | **209.2** | **-2.1%** | - The company operates across three reportable segments: Media, Data & Engagement Solutions (MD&E), Integrated Advertising & Creativity Led Solutions (IA&C), and Specialized Communications & Experiential Solutions (SC&E)[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Organic revenue grew 1.3% in Q1 2024, driven by domestic client wins, though adjusted EBITA margin slightly decreased amidst a mixed macroeconomic environment - Organic increase of revenue before billable expenses was **1.3% in Q1 2024**, compared to a decrease of (0.2)% in Q1 2023[132](index=132&type=chunk) - Adjusted EBITA margin on revenue before billable expenses **decreased to 9.4%** from 9.6% in the prior-year period[133](index=133&type=chunk) - The macroeconomic backdrop is characterized by global crosscurrents, with improved market tenor from H2 2023 but continued uncertainty coloring the market for IPG and its clients[121](index=121&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Organic revenue growth was led by a 2.1% domestic increase, particularly in Continental Europe, while cost controls helped reduce the ratio of salaries to revenue Organic Change in Revenue Before Billable Expenses by Geography (Q1 2024) | Region | Organic Change | | :--- | :--- | | Domestic | +2.1% | | International | -0.5% | | - United Kingdom | +0.2% | | - Continental Europe | +8.9% | | - Asia Pacific | -8.1% | | - Latin America | +3.0% | | - Other | -6.5% | | **Consolidated** | **+1.3%** | - Salaries and related expenses as a percentage of revenue before billable expenses **decreased to 72.1%** in Q1 2024 from 72.5% in Q1 2023, driven by lower base salaries, benefits, and tax[138](index=138&type=chunk) - Office and other direct expenses **decreased by 2.5% YoY**, driven by lower client service costs, meetings, and professional fees[140](index=140&type=chunk) [Segment Results of Operations](index=32&type=section&id=Segment%20Results%20of%20Operations) The IA&C segment led organic growth at 3.2%, while the MD&E segment significantly improved its EBITA margin to 9.7% through effective cost management Segment Performance Summary (Q1 2024) | Segment | Organic Revenue Change | Segment EBITA Margin | Key Drivers | | :--- | :--- | :--- | :--- | | MD&E | -0.5% | 9.7% | Decreased operating expenses outpaced revenue decline | | IA&C | +3.2% | 12.2% | Revenue growth exceeded expense increase | | SC&E | +1.5% | 12.9% | Increased operating expenses, particularly salaries | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, significantly improving operating cash flow through better working capital management while continuing shareholder returns - Net cash used in operating activities was **$157.4 million**, a significant improvement from a use of $547.6 million in Q1 2023, primarily due to a smaller use of cash for working capital[166](index=166&type=chunk)[172](index=172&type=chunk) - Key financing activities in Q1 2024 included **$126.6 million for common stock dividends** and **$62.4 million for share repurchases**[174](index=174&type=chunk) - The company's 4.200% senior notes (**$250.0 million**) matured on April 15, 2024, and were repaid with cash on hand[178](index=178&type=chunk) - As of March 31, 2024, the company had **$337.7 million remaining** under its share repurchase authorizations[181](index=181&type=chunk)[63](index=63&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk exposure remained unchanged in Q1 2024, with interest rate risk mitigated by having 99% of its debt at fixed rates - There has been **no significant change** in the company's exposure to market risk during the first quarter of 2024[203](index=203&type=chunk) - As of March 31, 2024, approximately **99% of the company's debt obligations bore fixed interest rates**, mitigating exposure to interest rate fluctuations[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of quarter-end, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were **effective**[204](index=204&type=chunk) - **No changes** in internal control over financial reporting occurred in Q1 2024 that materially affected or are likely to materially affect the controls[206](index=206&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings from normal business operations are not expected to have a material adverse effect on the company's financial condition or results - The company is involved in various legal proceedings from the normal course of business, but management believes the outcomes will **not have a material adverse effect** on its financials[110](index=110&type=chunk)[209](index=209&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the 2023 Annual Report on Form 10-K occurred during the first quarter of 2024 - **No material changes** to the risk factors disclosed in the 2023 Annual Report on Form 10-K occurred in the first quarter of 2024[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 2.34 million shares of common stock for an average price of $32.39 per share during the first quarter of 2024 Share Repurchases in Q1 2024 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | Jan 1 - 31 | 186,271 | $32.79 | 175,000 | | Feb 1 - 29 | 622,888 | $32.38 | 225,000 | | Mar 1 - 31 | 1,529,593 | $32.35 | 1,527,000 | | **Total Q1** | **2,338,752** | **$32.39** | **1,927,000** |

Wall Street analysts forecast that Interpublic Group (IPG) will report quarterly earnings of $0.36 per share in its upcoming release, pointing to a year-over-year decline of 5.3%. It is anticipated that revenues will amount to $2.17 billion, exhibiting a decline of 0.1% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this tim ...

Core Viewpoint - The Interpublic Group of Companies, Inc. (IPG) is expected to report its first-quarter 2024 results on April 24, with a history of earnings surprises, having exceeded the Zacks Consensus Estimate in three of the last four quarters, averaging a surprise of 10.2% [1] Q1 Expectations - The Zacks Consensus Estimate for IPG's revenue is $2.2 billion, indicating a slight decline from the previous year's figure, attributed to declines in digital specialist agencies and client losses in the telecom sector at McCann [2] - Revenue estimates for Specialized Communications & Experiential Solutions (SC&E) are $573.4 million, showing a slight decline from the previous year [3] - Integrated Advertising & Creativity Led Solutions (IA&C) revenues are estimated at $928.7 million, reflecting a 3.7% decrease from the year-ago quarter [3] - Media, Data & Engagement Solutions (MD&E) revenues are projected at $1 billion, suggesting a 3.1% increase from the first quarter of 2023, driven by growth at IPG Mediabrands [3] EBITA Estimates - EBITA for MD&E, SC&E, and IA&C segments is expected to increase by 65.5%, 8.5%, and less than 1% to $130.9 million, $49 million, and $98.5 million, respectively [3] - For Corporate and Other, EBITA is anticipated to rise 5.7% to negative $13.1 million [3] Earnings Per Share - The consensus estimate for earnings per share is 36 cents, indicating a 5.3% decline from the previous year's figure, primarily due to revenue dips in SC&E and IA&C segments [4] Earnings Prediction Model - The current model does not predict an earnings beat for IPG, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), indicating lower odds of exceeding earnings expectations [5] Stocks to Consider - Other companies in the Business Services sector with favorable earnings predictions include Automatic Data Processing (ADP) and Envestnet (ENV), both showing positive growth estimates and past earnings surprises [6][7]

New York, NY, April 08, 2024 (GLOBE NEWSWIRE) -- Interpublic Group (NYSE:IPG) today announced that it will release earnings for the first quarter ended March 31, 2024 on the morning of April 24, 2024. 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 (800) 593-9891. Outside the United States, please call (517) 308-9356. The participant passcode is 6123844. The call will be availab ...

TEL AVIV, Israel, April 8, 2024 /PRNewswire/ -- Savage Ventures, the leading investors, acquirers, and operators of high-growth digital-first businesses, signed a two-year exclusive contract with Primis for American Songwriter. Primis, the leading video discovery platform for publishers and founder of Sellers.guide, is excited to continue its partnership with Savage Ventures under this new agreement. American Songwriter, an esteemed songwriting and music publication established in 1984, has been enriching t ...

New York, NY, March 18, 2024 (GLOBE NEWSWIRE) -- Interpublic Group (NYSE:IPG) announced today that Kristen Cavallo will be retiring as Global CEO of MullenLowe this spring and will remain available to the company in an advisory capacity until 2025. Cavallo announced that her next move will include applying her deep and varied communications experience to political and societal causes.  A strategist turned CEO, Cavallo is recognized for crafting strategies and competitive positionings that result in business ...

MINNEAPOLIS, March 13, 2024 /PRNewswire/ -- Today, Carmichael Lynch announced that Tierney, a leading marketing communications firm in the Mid-Atlantic, will become part of Carmichael Lynch effective May 1, 2024. With the addition of this office, the expanded full-service agency will maintain its headquarters in Minneapolis, along with offices in New York and now Philadelphia. Both agencies are owned by Interpublic Group (NYSE: IPG). In conjunction with this news, Mary Stengel Austen, co-founder and CEO of ...

BOSTON, March 12, 2024 /PRNewswire/ -- Genuine, a leading digital experience agency part of Jack Morton, today announces the launch of a new brand identity. The updated look and feel for the agency are based on its new innovative brand strategy, prioritizing accessibility, and digital best practices at its core. This transformative initiative represents a significant milestone for the company as it redefines its identity to align with its values and capabilities closely. The new brand, which debuted on Genu ...

The Martin Agency and The Weber Shandwick Collective Named to the A-List IPG Health Wins Health Care Network of the Year IPG Mediabrands Named U.S. Network of the Year UM Named Media Agency of the Year New York, NY, March 11, 2024 (GLOBE NEWSWIRE) -- Interpublic Group (NYSE:IPG) today announced that five of its agencies were honored at the Ad Age A-List & Creativity Awards — the trade publication's coveted ranking of agencies, companies and innovators and their efforts to move the advertising industry forwa ...