Interpublic Group of Cos., a marketing conglomerate, on Thursday reported second-quarter results above analyst estimates — the latest indication that companies are growing more comfortable spending on advertising as the economy recovers.
Interpublic shares spiked 78 cents, or 9.4 percent, to $9.03 in afternoon trading. The stock has ranged from $5.03 to $12.25 over the past year.
In the second quarter, Interpublic earned $105.3 million, or 15 cents per share, compared with a profit of $20.9 million, or 4 cents per share, in the year-ago quarter.
Analysts polled by Thomson Reuters expected a profit of 10 cents per share.
Revenue rose 10 percent to $1.62 billion. Analysts predicted revenue of $1.51 billion.
Interpublic said its revenue was helped by current and new clients.
In a statement, Interpublic CEO Michael I. Roth acknowledged that there are still "areas of uncertainty" in the worldwide economy, so his company will keep managing its business "conservatively."
Copyright 2010 AP News
