Interpublic (IPG) Q1 Earnings Meet Estimates, Decline Y/Y

Core Viewpoint - The Interpublic Group of Companies, Inc. (IPG) reported mixed first-quarter 2024 results, with earnings meeting expectations while revenues exceeded estimates but showed a year-over-year decline [1] Financial Performance - Adjusted earnings per share were 36 cents, meeting the Zacks Consensus Estimate but down 5.3% year-over-year [1] - Net revenues were $2.2 billion, slightly surpassing consensus estimates but down 13.4% year-over-year [1] - Total revenues reached $2.5 billion, a decline of 1% and in line with estimates [1] - Operating income was $184.2 million, a decrease of 2.2% from the previous year and below the expected $245.9 million [2] - Operating margin on net revenues improved to 11.3% from 8.6% year-over-year, meeting estimates [2] - Adjusted EBITA was $204.9 million, down 2.1% year-over-year and missing the estimate of $265.4 million [2] - Adjusted EBITA margin on net revenues decreased to 9.4% from 9.6% in the prior year, lagging behind the anticipated 12.2% [2] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of the quarter were $1.9 billion, down from $2.4 billion in the previous quarter [3] - Total debt remained flat at $3.2 billion compared to the previous quarter [3] - The company repurchased 1.9 million shares at an average cost of $32.4 per share, totaling $62.4 million [3] - A common stock cash dividend of 33 cents per share was paid out, amounting to $126.6 million [3] 2024 Guidance - The company anticipates organic net revenue growth of 1-2% for 2024 [4] - Adjusted EBITA margin is expected to be 16.6% [4] - Currently, Interpublic holds a Zacks Rank 4 (Sell) [4]