Ad firm Interpublic beats quarterly estimates on resilient client spending
The results are the latest sign that ad spending is holding firm in an uncertain economy, after French ad giant Publicis and Omnicom also reported upbeat earnings. Increasing use of AI for creating ads has sparked worries about the industry that has long been the creative voice for brands.
Interpublic benefited in the April-June quarter from strong spending from its media and healthcare-focused businesses, as well as growth in its sports marketing and public relations units, CEO Philippe Krakowsky said.
The company, which last year signed a $13.25 billion merger with Omnicom to create the world's largest ad agency and better navigate the changing industry landscape, also said it expects the deal to close in the second half of the year.
Interpublic's media services are managed through IPG Mediabrands, which includes brands such as Initiative and Mediahub. Its healthcare marketing is managed under the unified IPG Health network.
The company reported second-quarter revenue of $2.54 billion, compared with analysts' average estimate of $2.17 billion, according to data compiled by LSEG.
Its adjusted profit per share of 75 cents also beat the estimate of 56 cents.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
BlueLinx Holdings Inc (BXC) Q2 2025 Earnings Call Highlights: Navigating Market Challenges with ...
Net Sales: $780 million, up 2% year over year. Adjusted EBITDA: $26.8 million, representing a 3.4% adjusted EBITDA margin. Adjusted Net Income: $5.6 million or $0.70 per share. Gross Margin: 15.3%, down 60 basis points from the prior period. Specialty Products Net Sales: $543 million, up 1% year over year. Specialty Products Gross Margin: 18.5%, down 80 basis points from last year. Structural Products Net Sales: $237 million, up 3.4% compared to the prior year period. Structural Products Gross Margin: 8.2%, up 30 basis points from the same period last year. Cash on Hand: $387 million at the end of the quarter. Total Debt: $376 million, with a net debt of negative $11 million. Operating Cash Flow: Negative $27 million for the quarter. Free Cash Flow: Negative $36 million for the quarter. Share Repurchase: $20 million repurchased in Q2, with a new $50 million authorization approved. Warning! GuruFocus has detected 3 Warning Signs with BXC. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points BlueLinx Holdings Inc (NYSE:BXC) reported solid gross margins for both specialty and structural products, with net sales and volumes increasing despite challenging market conditions. The company successfully executed its product and channel strategies, resulting in market share gains and strong demand creation efforts, particularly in the multi-family segment. BlueLinx Holdings Inc (NYSE:BXC) returned capital to shareholders by repurchasing $20 million of shares in Q2 and authorized a new $50 million share repurchase program. The company's digital transformation efforts are on track, with advancements in Oracle transportation management and e-commerce transactions, enhancing operational efficiencies. BlueLinx Holdings Inc (NYSE:BXC) maintained a strong financial position with significant liquidity, allowing flexibility in strategic initiatives and capital allocation. Negative Points Market-driven price deflation continues to impact profitability, particularly in certain product categories, despite volume growth. The housing market remains soft, with high mortgage rates and economic uncertainty affecting the building materials and distribution sector. The multi-family segment, while growing, leads to longer inventory holding periods and lower gross margins due to direct sales dynamics. Competitive pressures in the market require BlueLinx Holdings Inc (NYSE:BXC) to work harder to maintain and grow its business. The company's free cash flow was negative in Q2, primarily due to lower net income, seasonal working capital changes, and increased capital expenditures. Q & A Highlights Q: How did specialty volumes trend throughout the quarter, given the slower than expected builder spring selling season? A: Shyamsundar Reddy, CEO, explained that despite a 10% year-over-year decline in housing starts, BlueLinx's strategy to create demand through multi-family and builder pull-through efforts is working. They focused on engineered wood products (EWP), millwork, and structural product categories to drive growth, supporting customers and suppliers in achieving their growth objectives. Q: Can you provide more color on the primary drivers of the strong multi-family growth and the runway for continued share gains? A: Shyamsundar Reddy, CEO, noted that early investments in multi-family projects have paid off, providing a seasonal catalyst. BlueLinx has made both operational and capital investments to support the complexity of multi-family projects, working closely with key customers to win business. They leverage their team and services to support customers, offering creative program structures that benefit suppliers, customers, and BlueLinx. Q: Has the success of the Portland Greenfield accelerated the timeline for future greenfields, especially in key Western markets? A: Shyamsundar Reddy, CEO, stated that while the success of the Portland Greenfield accelerates their ability to have successful future greenfields, the main constraint is finding the right real estate. BlueLinx has an active greenfield market pipeline and is committed to opening more greenfields, working with real estate professionals to identify sites. Q: Are there any recent changes in broader industry conditions or competition? A: Shyamsundar Reddy, CEO, mentioned that while there is more certainty regarding tariffs, which could unlock pent-up demand, there are no significant changes beyond public information. Competition remains intense, but BlueLinx is controlling the narrative by driving demand through investments in new channel focus areas. Q: How does BlueLinx manage the risk of commodity volatility in multi-family projects? A: Shyamsundar Reddy, CEO, explained that BlueLinx has built a robust system for managing structural wood products, leveraging consigned and cash-on-hand inventory. They maintain strong planning and relationships with customers to manage volatility, focusing on turn days for committed inventory and evolving arrangements to ensure win-win scenarios for customers, suppliers, and BlueLinx. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
20 minutes ago
- Yahoo
Aker, Nscale, OpenAI plan $1 billion Norway AI facility
OSLO (Reuters) -Norway's Aker ASA said on Thursday it is partnering with Nscale Global Holdings and OpenAI to build an artificial intelligence facility in northern Norway, aiming to install 100,000 NVIDIA chips by the end of 2026. The partnership, called Stargate Norway, will use 100% renewable energy to power the AI facility, Norwegian conglomerate Aker said in a joint statement with Nscale and OpenAI. Stargate Norway will be owned by a 50/50 joint venture between Nscale and Aker, investing about $1 billion for the initial phase of the project and with the potential to increase the site's capacity tenfold in future phases, they said. The facility, located in a hydropower-rich region of Norway, will be among the first AI gigafactories in Europe, Nscale CEO Josh Payne said in the statement. "Sovereign, scalable and sustainable infrastructure is now essential to remain competitive," he added. Sign in to access your portfolio
Yahoo
20 minutes ago
- Yahoo
Apollo Commercial Real Estate Finance Inc (ARI) Q2 2025 Earnings Call Highlights: Strong Loan ...
Distributable Earnings: $36 million or $0.26 per share for the second quarter. GAAP Net Income: $18 million or $0.12 per diluted share. Loan Portfolio Carrying Value: $8.6 billion, up from $7.7 billion in Q1. Weighted Average Unlevered Yield: 7.8%. New Loan Originations: $1.4 billion in commitments for the quarter. Add-on Fundings: $394 million for previously closed loans. Repayments and Sales: $631 million during the quarter. General CECL Allowance Increase: $3.1 million. Total Liquidity: $208 million at quarter end. Book Value Per Share: $12.59, excluding general CECL allowance and depreciation. Warning! GuruFocus has detected 9 Warning Signs with ARI. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Apollo Commercial Real Estate Finance Inc (NYSE:ARI) delivered strong performance in Q2 2025, with significant progress in loan originations, portfolio management, and balance sheet optimization. ARI committed to $1.4 billion in new loans during the quarter, with year-to-date commitments reaching $2 billion, showcasing robust capital redeployment. The company benefits from Apollo's real estate credit platform, allowing access to a diverse transaction flow and eliminating cash drag. Approximately 2/3 of residential loans in ARI's portfolio have been originated in the past 24 months, benefiting from a valuation reset and enhanced credit quality. ARI successfully refinanced its Term Loan B facilities, extending corporate debt maturity to June 2029, highlighting market confidence in the company. Negative Points The carrying value of ARI's portfolio increased by 12% from the prior quarter, but the book value per share decreased slightly to $12.59. Despite progress, some assets like the Brook are still non-earning, with plans to monetize them not expected until early next year. The general CECL allowance increased by $3.1 million due to portfolio growth, indicating potential risk exposure. Leverage remains around 4 times, with significant non-earning assets, raising concerns about future leverage management. The office sector remains challenging, with ARI avoiding new office deals due to market conditions and portfolio concentration concerns. Q & A Highlights Q: How is the progress at the Brook, and what is the timeline for generating cash flow and potentially moving on from the asset? A: The Brook is a 500-plus unit development, with 70% market rate and 30% affordable units. Leasing has started on the market rate side, and the asset is expected to become cash flow positive early next year. A decision on whether to sell outright or bring in a partner is anticipated between the first and second quarter of next year. The ultimate plan is to monetize and move on. - Stuart Rothstein, CEO Q: Can you provide more details on the potential upside from the land parcels associated with the Brook? A: There is a small parcel referred to as the Western parcel, and discussions are ongoing about acquiring air rights or the assets outright to increase density. If successful, this could provide upside for ARI shareholders, but it is too early to predict the outcome. - Stuart Rothstein, CEO Q: What are your expectations for the commercial real estate transaction market through the end of the year, and how does it affect ARI's plans? A: Activity has picked up, and there is more capital and deal flow. We are confident in finding opportunities that fit ARI's goals. The market is expected to remain robust, providing enough opportunities for ARI to achieve its objectives. - Stuart Rothstein, CEO Q: How are you approaching the current cross currents in the commercial real estate market, and where do you see the best opportunities? A: We remain constructive on all forms of housing, including senior housing and student housing. We are cautious with office deals and focus on opportunities in the UK, Europe, and the US. We avoid ground-up development except for long-term lease data centers. - Scott Weiner, CIO Q: Is there any expectation for changes in the dividend policy, and what factors could prevent a dividend increase? A: There are no material tax protections against rising earnings, and the goal is to distribute as much of the earnings as possible as dividends. The policy is reviewed quarterly, and the aim is to maintain stability without frequent special dividends. - Stuart Rothstein, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
