Why Interpublic Group Stock Dropped After Earnings
Shares of Interpublic Group (NYSE: IPG) tumbled by 12.5% through 12:01 p.m. ET on Friday, despite the advertising giant delivering second-quarter numbers that beat analysts' consensus predictions for both revenues and earnings. The stock was weighed down in part by management's assessment of the advertising market as still looking pretty weak.
Analysts had forecast Interpublic would earn an adjusted profit of just $0.60 per share on sales of $2.4 billion in Q2. In fact, Interpublic earned $0.74 per share (adjusted), while its sales approached $2.7 billion.
Revenue at Interpublic declined by about 2% year over year in Q2, and operating profits fell by 11%. Net income was weaker than the adjusted figure -- $0.68 per share. On the plus side, however, it was up a strong 17% year over year.
Source Fool.com
