NEW YORK (
(IPG - Get Report)
saw earnings surge during the second quarter, driven by solid growth in most segments of the company and better-than-expected revenue.
For the quarter ended June 30, Interpublic saw earnings rise almost 200% to $82.5 million, or 15 cents a share, compared with earnings of $27.8 million, or 4 cents a share, in the same period a year ago.
Operating income for Interpublic significantly improved by more than 80% to $177.2 million from 96.9 million in 2009.
Interpublic revenue increased 9.7% to $1.62 billion from $1.47 billion during the quarter. Interpublic saw the biggest increase in revenue among the auto, retail and financial services sectors.
The company decreased its operating expenses by 4.6% to $1.44 billion from 1.38 billion.
"With revenue stability and growth back in the picture, we feel we are very much on track to deliver on our operating margin objective of better than eight percent for 2010," said Michael Roth, chairman and CEO of Interpublic.
For the first half of the year, Interpublic swung to a profit of $17.9 million, or 2 cents a share, compared with a loss of $39.2 million, or 11 cents a share, in the same period a year ago.
Revenue rose 5.7% to $2.96 billion from $2.8 billion. Interpublic decreased its total operating expenses by 2% to 2.84 billion from 2.78 billion.
As the economy rebounds, Roth stated that Interpublic will be able to get back on a positive margin trajectory; the company increased its margin outlook for the year to better than 8%.
"We are proving that we have the talent and the tools to benefit from a macro recovery and the ability to convert revenue growth into bottom-line results. Of course, there remain areas of uncertainty in the global economy, so we will continue to manage the business conservatively," said Roth.
Interpublic shares are up more than 9% to around $9 in pre-market trading.
-- Reported by Theresa McCabe in Boston.
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