UPDATE: Interpublic Posts Downbeat Q4 Earnings, Sales Beat Estimates

reported weaker-than-expected earnings for the fourth quarter. The company reported upbeat quarterly sales and lifted its quarterly dividend by 26%. The New York-based company posted a quarterly net profit of $308.9 million, or $0.73 per share, versus a year-ago profit of $193.1 million, or $0.44 per share. Excluding non-recurring items, the company's adjusted earnings rose to $0.57 per share from $0.56 per share. Its revenue climbed 4% to $2.21 billion from $2.12 billion. However, analysts were expecting earnings of $0.58 per share on revenue of $2.18 billion. Interpublic lifted its quarterly dividend to $0.12 per share from 9.5 cents per share. The company's board also authorized a new $300 million share buyback program. Salaries and related expenses gained 5.6% to $1.27 billion in the quarter, while office and general expenses slipped 5.7% to $507.6 million. During the quarter Interpublic repurchased 6.7 million shares of its common stock at an aggregate cost of $127.0 million At December 31, 2014, cash, cash equivalents and marketable securities rose to $1.67 billion, versus $1.64 billion at December 31, 2013. At December 31, 2014, total debt increased to $1.73 billion, from $1.66 billion at December 31, 2013. Michael I. Roth, Interpublic`s Chairman and CEO said, "Looking to 2015, we believe the tone of the business is solid, yet there remains macro uncertainty relating to both the currency environment and Europe. For 2015, we are therefore targeting 3 - 4% organic revenue growth, and 80 - 100 basis points of operating margin expansion. Coupled with strong capital returns, we are confident that achieving these targets will allow us to build on our strong track record of enhancing shareholder value." For 2015, the company projects organic revenue growth between 3% and 4%. Interpublic shares rose 1.73% to close at $21.16 yesterday.