Interpublic Group Of Companies Q3 Profit Rises

(RTTNews) - Interpublic Group of Companies Inc. (IPG) reported that its net income available to IPG common stockholders for the third quarter 2016 grew to $128.6 million, or $0.32 per share from $74.9 million or $0.18 per share in the prior year.

As adjusted to primarily exclude a non-operating pre-tax gain of $3.9 million on the sale of businesses, which is chiefly non-cash, in "Other (Expense) Income, net," adjusted net income available to IPG common stockholders would be $124.4 million and adjusted diluted earnings per share would be $0.31 for the third quarter 2016. This compared to adjusted net income available to IPG common stockholders a year ago of $110.2 million, and adjusted diluted earnings per share of $0.27.

Quarterly revenue increased 3.0% to $1.92 billion, from $1.87 billion in the third quarter of 2015, with an organic revenue increase of 4.3% compared to the prior-year period. This was comprised of an organic increase of 1.8% in the U.S. and 8.1% internationally.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share and revenues of $1.91 billion for the quarter. Analysts' estimates typically exclude special items.

The company upgraded full-year organic revenue growth target range to 4%-5% and affirmed it is on track to deliver operating margin increase of 50 basis points or more for the full-year.

Going forward, the overall tone of business remains solid and, in light of the strength of our offerings and our organic revenue performance through nine months, we believe it's appropriate to raise our full-year organic growth target to a range of 4 to 5 percent. We also feel that we remain well-positioned to achieve 2016 operating margin expansion of 50 basis points or more.