(Adds details on organic growth forecast)
Oct 24 (Reuters) - U.S. advertising company Interpublic Group slashed its annual forecast for organic revenue growth, as clients in its overseas markets curb spending on marketing.
Shares of Interpublic, one of the world’s “Big Four” traditional advertising groups, fell nearly 8 percent to $19.00 in premarket trading on Tuesday.
The company said it now expects full-year organic revenue growth of 1 percent to 2 percent, compared to a previously expected range of 3 percent to 4 percent.
The company’s third-quarter revenue and earnings missed analysts’ estimates, led by a 1.3 percent decline in international revenue to $746.6 million in the quarter ended Sept. 30.
Analysts on average had expected international sales of $769 million, according to research firm FactSet.
Interpublic, whose clients include Google, Microsoft and Coca-Cola, said revenue from the United States, which makes up more than 60 percent of total revenue, dipped 0.8 pct.
Interpublic’s total revenue fell 1 percent to $1.9 billion, missing analysts’ estimates of $1.96 billion, according to Thomson Reuters I/B/E/S.
Its net income rose to $146.2 million or 37 cents per share in the quarter, from $128.6 million or 32 cents per share, a year earlier.
Excluding one-time items, Interpublic earned 31 cents per share, falling short of analysts’ estimates of 33 cents. (Reporting by Arjun Panchadar in Bengaluru; Editing by Sai Sachin Ravikumar)