This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Interpublic Underperforms; Stock Shocked

NEW YORK ( TheStreet) -- Interpublic (IPG - Get Report), the ad agency, posted a huge drop in second-quarter profit, missing Wall Street targets.

Investors sold off the company's shares Tuesday in response. Not helping matters for the stock was the Conference Board's consumer confidence report, which slid more than market watchers were expecting -- not generally a good sign for those who make money hawking stuff to consumers.

Shares of Interpublic have been beaten down as much as any print media stock during the ad recession, but have rallied some 64% since February. They were headed in the opposite direction Tuesday, trading at $5.50, down 69 cents, or 11%, on heavy volume.

Before the bell, Interpublic reported a bottom line of $21 million, or 4 cents a share, down 76% from last year's rather unspectacular $88 million, or 17 cents share. It was also a bad miss of analysts' per-share expectations of 10 cents.

On the top line, the declines were less severe. Interpublic took in revenue of $1.47 billion, down 20% from the $1.84 billion it recorded a year ago.

A large part of that drop resulted from the auto sector's widescale retraction from the ad market, as well as a stronger dollar, the company said. Excluding the currency impact, Interpublic said its "organic" revenue decline was on the order of 14.5%.

Interpublic didn't give specific financial guidance. But CEO Michael Roth said in a statement that the company expects its "organic revenue result for the second half of 2009 should be consistent with the year-to-date performance."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
PUBGY $21.12 0.00%
IPG $21.79 0.00%
OMC $77.50 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs