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NEW YORK - On Wednesday, Interpublic Group of Companies (NYSE:IPG) reported fourth-quarter results that fell short of analyst expectations, sending shares down -1.36% in pre-market trading.
The advertising and marketing services company posted adjusted earnings per share of $1.11, missing the consensus estimate of $1.17. Revenue came in at $2.43 billion, below the $2.53 billion analysts were expecting.
For the quarter, revenue before billable expenses decreased 5.9% YoY to $2.43 billion. Organic revenue, which excludes currency effects and acquisitions/divestitures, declined 1.8% compared to the prior year period.
"Solid new business momentum in the fourth quarter and early 2025 will begin to come online later this year, though it will not offset sizable client losses incurred last year due largely to changes in the media trading environment," said CEO Philippe Krakowsky.
The company expects an organic revenue decrease of 1% to 2% for the full year 2025. However, Interpublic is targeting an adjusted EBITA margin of 16.6% for 2025 despite revenue challenges, aided by a cost savings program expected to yield approximately $250 million in savings.
Interpublic maintained its quarterly dividend at $0.33 per share. The company did not repurchase any shares during the fourth quarter.
For the full year 2024, Interpublic reported organic revenue growth of 0.2% and an adjusted EBITA margin of 16.6%.
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