Interpublic Group of Companies Shares Plunged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of marketing service company Interpublic Group of Companies (NYS: IPG) fell 16% today after the company released earnings.

So what: Revenue and earnings were both up, but Wall Street was expecting even more than what the company delivered. Earnings per share were up to $0.19 from $0.15 per share a year ago, but fell a penny short of estimates.

Now what: The move today seems to be a bit overblown to me. Earnings per share were only a penny shy of expectations and revenue was less than 1% short of what analysts were looking for. I am not terribly excited about the stock's 20 P/E ratio, but this reaction to a reasonably good earnings report looks like an overreaction.

Interested in more info on Interpublic Group of Companies? Add it to your watchlist.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners