Interpublic Struggles With Revenue Decline In Q4, CEO Promises Business Transformation Strategies To Cut Costs

Interpublic Group of Companies, Inc. IPG shares are trading slightly higher in the premarket session on Wednesday.

The company reported fourth-quarter adjusted earnings per share of $1.11, missing the street view of $1.17. Revenue before billable expenses of $2.434 billion (down 5.9% year over year) missed the analyst consensus estimate of $2.518 billion.

During the quarter, foreign currency translation decreased revenue by 0.5%, net divestitures reduced it by 3.6%, leading to a 1.8% drop in organic revenue.

The company also authorized a new program to repurchase, from time to time, up to $155 million. The authorization under the new program is in addition to remaining for repurchase under the program announced in 2024.

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“Today we are reporting an organic revenue increase of 20 basis points for the full year 2024, along with adjusted EBITA margin in-line with our forecast of 16.6%. Our strong margin result reflects continued effective operating discipline by our teams, notwithstanding the challenges of the past year,” said Philippe Krakowsky, CEO.

As of December end, cash and equivalents totaled $2.19 billion, compared to $2.39 billion in the year-ago period. Total debt was $2.96 billion.

The CEO mentioned that the company plans an accelerated business transformation in 2025, focusing on cost savings and improved efficiency, targeting a 16.6% adjusted EBITA margin despite revenue challenges.

Price Action: IPG shares are trading higher by 0.40% to $27.28 premarket at last check Wednesday.

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