NEW YORK (TheStreet) -- Interpublic Group of Companies (IPG) recorded a 34% decline in third-quarter net income, caused by a one-time charge of $45.2 million, an expense from the early redemption of senior notes due 2017. The drop prompted shares to plunge 5.5% to $15.97 at 12:25 p.m. New York time.
Interpublic, parent of a portfolio of advertising and marketing agencies such as Universal McCann and Weber Shandwick, reported net income of $45.4 million, or 11 cents a share. Excluding the one-time charge, earnings were 17 cents a share. Revenue grew 2% to $1.7 billion and in the U.S. alone was up 4% to $976.6 million.
TheStreet Ratings team rates Interpublic Group of Companies as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate Interpublic Group of Companies (IPG) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
- You can view the full analysis from the report here: IPG Ratings Report
Written by Keris Alison Lahiff.