Interpublic Group (IPG) - Get Report on Wednesday got its message out to Wall Street, as the advertising and marketing company swung to a profit and beat analysts' second-quarter-earnings expectations.
Shares of the New York company, parent of such brands as McCann, FCB, Kinesso and Octagon, were up 9.8% to $34.34 at last check.
Interpublic reported net income $263.3 million, or 67 cents a share, compared with a loss of $45.6 million, or 12 cents a share, a year earlier.
The latest adjusted earnings came to 70 cents a share, beating the FactSet consensus analyst estimate of 43 cents a share.
Revenue totaled $2.27 billion, up 23% from a year earlier and surpassing the FactSet consensus of $2.08 billion.
At June 30, the company had cash and equivalents totaling $2.34 billion, more than double the $1.09 billion of a year earlier.
Looking ahead, the company raised its 2021 expectations to organic growth of 9% to 10% and profit margin based on adjusted earnings before interest, tax and amortization of about 16% "with continued progress on public health and sustained macro recovery."
Chief Executive Philippe Krakowsky said in a statement that in light of the results, the full-year outlook upgrade is appropriate. The results "represent a remarkable rebound from the impact of the pandemic on our business," he said.
"Our results this quarter compare favorably not only to the same period last year – which while the steepest decrease of the recession was well ahead of our peer group – but also Q2 of 2019," Krakowsky said.