Q1 ahead, guidance lifted
Organic rev growth of 3.6% was ahead (cons. +1.5%) with 4.3% in the US and 2.6% internationally. The introduction of new accounting standard ASC 606 affects revenue recognition and led to a full restatement. Consequently, our estimates/consensus and are only comparable with reported organic revenue growth, absolute OI and EPS. Operating income of $39m was ahead of our $36m forecast and consensus of $34m while EPS was light at $0.03 (AE and cons. $0.05) but included a number of tax items which we estimate had at least a $0.06 impact. The company lifted full year organic revenue growth guidance to the top end of the 2-3% range and now sees OI margins expanding 60-70bp vs. 20bp previously. Q1 OI margins rose 10bp but the quarter is by far the smallest of the year.Interpublic Group of Companies is an advertising and marketing services company. The company's segment include: Integrated Agency Networks (IAN) and Constituency Management Group (CMG). Within IAN, the company's agencies provide an array of communications and marketing services, each providing a range of solutions for its clients. In addition, the company's domestic integrated agencies provide a range of advertising, marketing communications services and/or marketing services and partner with its operating divisions as needed. CMG provides clients with services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and marketing consulting.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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