Interpublic's Stock Pulls Back Sharply From 15-year High After Profit And Sales Miss

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Interpublic Group of Companies tumbled in premarket trade Tuesday, after the advertising company missed second-quarter profit and sales expectations. Net profit fell to $94.7 million, or 24 cents a share, from $156.9 million, or 38 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 27 cents, below the FactSet consensus of 34 cents. Revenue slid 1.7% to $1.88 billion from $1.92 billion, below the FactSet consensus of $1.95 billion. "Client spending in the quarter reflected increased caution, but we don't see evidence of a broad-based economic downturn," said Chief Executive Michael Roth. The stock, which closed at a 15-year high on Monday, had rallied 9.2% year to date through Monday, while the S&P 500 had climbed 10.3%.

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