Earnings Disappointment Makes Interpublic's Price More Attractive
We think the company is positioned to benefit as advertising and marketing become more complex.
Interpublic Group’s (IPG) second-quarter results came in short of expectations. The disposition of smaller ad agencies, along with the impact of foreign exchange, worsened the blow of practically no organic revenue growth during the period.
The top-line decline created additional pressure on the bottom line as the company failed to record year-over-year second-quarter operating margin expansion for the first time since 2013. Management does see a turnaround in the second half, as it maintained its organic growth and operating margin expansion guidance for the full year.
Ali Mogharabi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.