Interpublic Q1 Profit Beats Estimates, But Revenue Falls Short

Interpublic Group of Cos. said Friday it had net income of $21.5 million, or 5 cents a share, in the first quarter, up from $5.4 million, or 1 cent a share, in the year-earlier period. The operator of advertising agencies said revenue edged up to $1.75 billion from $1.74 billion. The FactSet consensus was for EPS of 3 cents and revenue of $1.76 billion. "Against very challenging comparisons, we showed solid organic revenue growth in the quarter, with contributions from across our agencies and all marketing disciplines," Chief Executive Michael Roth said in a statement. The first quarter is usually a seasonally small one for Interpublic, he said, but the company is on track to achieve full-year targets of organic revenue growth of 3% to 4% and to improve operating margins by 50 basis points. Shares were not yet active in premarket trade, but have gained 7% in 2017, while the S&P 500 has gained 5%.