The Interpublic Group (IPG), which provides advertising and marketing services, reported revenues of $2.01 billion, up 11.7% from a year ago and beat the Zacks Consensus Estimate of $1.9 billion. On an organic basis, revenues grow 11.2% year over year.
On a geographic basis, revenues in the US grew 13.1% and 9.4% on an international basis.
Operating margin improved to 16.4% from 14.9% in the year-ago quarter. Net income came in at $195.0 million or 36 cents per share compared to a net income of $129.4 million or 24 cents in the year-ago quarter. This easily beat the Zacks Consensus Estimate of 31 cents.
For 2010, revenues came in at $6.53 billion, up 8.3% year over year. Foreign currency translation positively impacted revenues by 1.1%. Operating margin increased to 8.4% from 5.7% in 2009.
Net income came in at $271.2 million or 47 cents per share compared to a net income of $93.6 million or 19 cents in 2009.
Interpublic Group exited the fourth quarter and 2010 with cash and equivalents of $2.69 billion, up from $1.94 billion at the end of the previous quarter.
Concurrent with the earnings release, Interpublic Group announced that the Board of Directors recently authorized a program to repurchase up to $300.0 million of common stock. Interpublic Group also declared a cash dividend of $0.06 per share which will be paid on March 25, 2011 to holders of record at the close of business on March 11, 2011. Total debt was $1.74 billion, down from $1.94 billion at December 31, 2010.
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