On Wednesday, The Interpublic Group of Companies, Inc. (NYSE: IPG) spotted trading -28.53% off 52-week high price. On the other end, the stock has been noted 3.33% away from the low price over the last 52-weeks. The stock changed -4.41% to recent value of $18.01. The stock transacted 8992864 shares during most recent day however it has an average volume of 3935.92K shares.

IPG Announces Full Year and Fourth Quarter 2019 Results:

Summary

Revenue

Fourth quarter 2019 net revenue was $2.43B, contrast to $2.41B in 2018, with an organic net revenue increase of 2.9% contrast to the prior-year period. This was comprised of an organic net revenue increase of 2.1% in the U.S. and 4.1% internationally. Fourth quarter 2019 total revenue was $2.90B contrast to $2.86B in 2018.

Full year 2019 net revenue was $8.63B, contrast to $8.03B in 2018, with an organic net revenue increase of 3.3% contrast to the prior-year period. This was comprised of an organic net revenue increase of 1.9% in the U.S. and 5.5% internationally. Full year 2019 total revenue was $10.22B, contrast to $9.71B in 2018.

Operating Results

Fourth quarter 2019 operating income was $491.3M, contrast to $459.1M in 2018. EBITA was $512.7M in the fourth quarter of 2019, contrast to adjusted EBITA of $503.7M in 2018, which excludes $22.6M of transaction costs for the acquisition of Acxiom from the prior-year period. EBITA margin on net revenue was 21.1% in the fourth quarter of 2019, contrast to adjusted EBITA margin of 20.9% for the same period in 2018.

For the full year 2019, operating income was $1.09B, contrast to $1.01B in 2018. Adjusted EBITA for the full year 2019 was $1.20B, which excludes restructuring charges of $31.8M from the first quarter, contrast to adjusted EBITA for the full year 2018 of $1.08B, which excludes Acxiom transaction costs of $35.0M. Adjusted EBITA margin on net revenue was 14.0% in 2019, contrast to 13.5% in 2018.

Refer to reconciliations on page 12 for more detail.

Net Results

Income tax provision in the fourth quarter of 2019 was $86.1M on income before income taxes of $427.8M.

Fourth quarter 2019 net income accessible to IPG ordinary stockholders was $328.9M, resulting in earnings of $0.85 per basic share and $0.84 per diluted share. Adjusted earnings were $0.88 per diluted share as adjusted for after-tax amortization of purchased intangibles of $17.2M, an after-tax loss of $23.6M on the sales of businesses, and the positive impact of tax valuation allowance reversals of $25.3M. This compares to adjusted earnings of $0.89 per diluted share a year ago,Because of a lower adjusted effective tax rate in the prior-year period.

Income tax provision for the full year 2019 was 204.8M on income before income taxes of 878.3M.

Full year 2019 net income accessible to IPG ordinary stockholders was $656.0M, resulting in earnings of $1.70 per basic share and $1.68 per diluted share. Adjusted earnings were $1.93 per diluted share as adjusted for after-tax amortization of purchased intangibles of $69.1M, after-tax restructuring charges of $24.2M from the first quarter of 2019, an after-tax loss of $45.9M on the sales of businesses, and the positive impact of various discrete tax items of $39.2M. This compares to adjusted earnings of $1.86 per diluted share a year ago.

Refer to reconciliations on pages 10 to 14 for more detail.

Its earnings per share (EPS) expected to touch remained 5.40% for this year while earning per share for the next 5-years is expected to reach at 4.50%. IPG has a gross margin of 14.60% and an operating margin of 10.20% while its profit margin remained 6.40% for the last 12 months.   According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of -20.41% from the mean of 20 days, -21.68% from mean of 50 days SMA and performed -18.50% from mean of 200 days price. Company’s performance for the week was -16.47%, -22.24% for month and YTD performance remained -22.03%.

 

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