Shares of Interpublic Group of Companies tumbled 5.5% in premarket trade Tuesday, on track to open at a 2-year low, after the advertising agency missed third-quarter profit and sales expectations and cut its outlook. The company said in a statement that revenue was negatively impacted by “broader trends that are being felt throughout much of the industry.” Net income rose to $146.2 million, or 37 cents a share, from $128.6 million, or 32 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share of 31 cents was below the FactSet consensus of 33 cents. Revenue fell 1.0% to $1.90 billion, missing the FactSet consensus of $1.97 billion, as both U.S. and international revenue fell below expectations. The company cut its outlook for 2017 organic revenue growth guidance range to 1% to 2% from 3% to 4%, and its margin expansion outlook to 0.40 percentage points from 0.50 percentage points. The stock has plunged 19% over the past three months through Monday, as second-quarter results reported in July also missed expectations, while the S&P 500 has gained 3.9%.
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