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Dec 31, 2019
Interpublic Group Q4 2019 Earnings Report
Reported strong results for the quarter and full year, with organic revenue growth leading the sector and adjusted EBITA margin expansion.
Key Takeaways
Interpublic Group reported strong Q4 and full-year 2019 results. Q4 organic growth was 2.9%, and adjusted EBITA margin was 21.1%. The company is targeting 3% organic growth and further EBITA margin expansion in 2020.
Fourth-quarter organic growth was 2.9%, on top of strong growth a year ago.
U.S. organic growth was 2.1% and international organic growth was 4.1%.
Q4 EBITA was $513 million and EBITA margin on net revenue was 21.1%.
Adjusted diluted earnings per share for the quarter was $0.88.
Forward Guidance
The company is targeting organic revenue growth of 3% and EBITA margin expansion to 14.2% in 2020.
Positive Outlook
- The tone of the business remains sound.
- New business activity is solid.
- The breadth and strength of our portfolio positions us well to grow with our existing clients.
- Our hard work to create a modern, highly-collaborative Company ensures that we are positioned to profit from opportunities that may come from outside of our traditional arena going forward.
- There remains significant potential for value creation and enhanced shareholder value over the long term for our Company.
Challenges Ahead
- We continue to have very difficult comps year-on-year.
- We still have headwinds in the first half of 2020.
- There are wildcards out there, including the coronavirus.
- The impact of the coronavirus on our suppliers and the supply chain and what impact that would have on U.S. companies and other global companies remains to be seen.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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