Interpublic Group of Companies Inc (NYSE:IPG) will now pay its shareholders a sweetened quarterly dividend of $0.15 per share. That marks a 25% boost from $0.12 per share that the company paid in the last quarter. On annualized basis, the new dividend comes to $0.60 per share.
Interpublic Group of Companies Inc (NYSE:IPG) will distribute the newly declared dividend to shareholder on March 15, 2016. Shareholders of record as of March 1, 2016 will partake in the dividend payout.
Interpublic shareholders are also set to benefit from $300 million in new shares repurchase. In 2015, the company $285 million to shares repurchase program. The company has returned a combined $2.5 billion to shareholders in both dividends and buybacks since 2011.
According to CEO, Michael I. Roth, the sweetened dividend and the expanded buyback program demonstrate the operational and financial strength of IPG.
Interpublic Group of Companies Inc (NYSE:IPG) reported 4Q2015 revenue of $2.2 billion and EPS of $0.65. Analysts were looking for revenue of $2.19 billion and EPS of $0.62 in the quarter. In 4Q, organic U.S. sales rose 6.2% and international organic sales increased 4.1%.
Jefferies maintains a buy rating on Interpublic with a price target of $24. Interpublic shares are presently trading in the vicinity of $20. However, the firm has stepped down its 2016 estimates for Interpublic. For example, it now expects 2016 organic revenue to increase 3.8% as opposed to 4.3% increase previously modeled. Additionally, Jefferies’ 2016 EBIT moves to $935 million from $949 million in the earlier target.
For 1Q2016, Jefferies is predicting revenue of $1.7 billion, EBIT of $9 million and EPS loss of $0.01. It previously estimated 1Q revenue of $1.72 billion, EBIT of $22 million and EPS profit of $0.02.
Strong forex headwind is expected to take the spotlight away from Interpublic Group of Companies Inc (NYSE:IPG)’s 1Q2016 and the full-year 2016.