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Interpublic Group of Companies Misses Where it Counts

Monday - 4/22/2013, 2:00am  ET

Interpublic Group of Companies reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Interpublic Group of Companies beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. GAAP loss per share grew.

Margins dropped across the board.

Revenue details
Interpublic Group of Companies reported revenue of $1.54 billion. The 16 analysts polled by S&P Capital IQ expected to see revenue of $1.53 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.14. The 16 earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share. GAAP EPS were -$0.14 for Q1 versus -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.6%, 10 basis points worse than the prior-year quarter. Operating margin was -2.7%, 10 basis points worse than the prior-year quarter. Net margin was -3.6%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.76 billion. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $7.15 billion. The average EPS estimate is $0.85.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 181 members out of 206 rating the stock outperform, and 25 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Interpublic Group of Companies a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interpublic Group of Companies is outperform, with an average price target of $14.24.

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This article was originally published as Interpublic Group of Companies Misses Where it Countson Fool.com

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