Wall Street punished Interpublic Group in early Tuesday trading after it missed The Street’s third-quarter earnings expectations. Other ad-sector stocks were also dragged down.
But IPG’s shares took the worst tumble, down more than 6% on the New York Stock Exchange, following its third-quarter earnings report, which showed a revenue decline and weak organic growth. The company also downgraded its organic growth outlook for the year to between 1% and 2%. The firm’s earlier guidance was 3% to 4%.
WPP ADRs and Publicis Groupe were both down 3%-plus in trading on the NASDAQ and Paris exchanges, respectively. Omnicom was down nearly 2% on the NYSE.
By comparison, the Dow Jones Industrial Average was up 169 points in early trading, while the S&P 500 was up slightly.
Last week, weaker-than-expected third-quarter results posted by Publicis Groupe also sent the big stocks in the ad sector spiraling downward.