Interpublic Q4 Profit Up, Hikes Dividend; To Buy Back Addl. $300 Mln Of Stock

(RTTNews) - Advertising and marketing services provider Interpublic Group of Cos., Inc. (IPG) reported that its fourth quarter 2014 net income available to common stockholders was $308.9 million or $0.73 per share from $193.1 million or $0.44 per share a year ago.

Excluding the impact of the net valuation allowance reversal on deferred tax assets in Continental Europe, earnings per share was $0.57 in 2014, compared to $0.56 in 2013 excluding the impact of restructuring and related costs. Analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenue grew to $2.21 billion, from $2.12 billion in the fourth quarter of 2013, with an organic revenue increase of 4.8% compared to the prior-year period. This was comprised of an organic revenue increase of 6.4% internationally and 3.4% in the U.S. Wall Street expected revenues of $2.19 billion for the quarter.

Looking to 2015, the company believes the tone of the business is solid, yet there remains macro uncertainty relating to both the currency environment and Europe. For 2015, it targets 3% - 4% organic revenue growth, and 80 - 100 basis points of operating margin expansion.

Interpublic Board authorized a new program to repurchase up to $300 million of the company's common stock. The new share program, which is in addition to any amounts remaining for repurchase under the program announced in 2014, will take effect immediately and has no expiration date.

The company said its board approved 26% increase in quarterly dividend. It has declared a common stock cash dividend of $0.12 per share, payable quarterly to holders of record on an ongoing basis.