Why Interpublic (IPG) Tumbled on Friday

NEW YORK (TheStreet) -- Interpublic Group of Companies (IPG) closed lower on Friday after posting fourth-quarter earnings below analyst estimates.

By market close, shares had unloaded 3.8% to $16.48. Trading volume of 8.7 million was more than double its three-month daily average.

The advertising and marketing conglomerate recorded net income of 56 cents a share for the three months to December. Analysts surveyed by Thomson Reuters had forecast earnings of 58 cents a share.

Revenue of $2.12 billion was 2.9% higher than a year earlier and was broadly in line with consensus.

Over fiscal 2013, per-share earnings of 78 cents fell short of consensus by 3 cents. Full-year sales totaled $7.12 billion.

TheStreet Ratings team rates INTERPUBLIC GROUP OF COS as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate INTERPUBLIC GROUP OF COS (IPG) a BUY. This is driven by multiple strengths, 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, notable return on equity, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

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