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Omnicom (OMC) Q1 Earnings Surpass Estimates, Increase Y/Y

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Omnicom Group Inc. (OMC - Free Report) reported impressive first-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year. This year-over-year increase occurred due to positive impact of foreign currency translation of 2.8%, offset by a fall in acquisition revenues, net of disposition revenues of 0.4% and a decrease in revenues due to negative organic growth of 1.8%.

Notably, the company’s shares have appreciated 47% over the past year, underperforming the 76.4% rally of the industry it belongs to.

Other Quarterly Details

Across fundamental disciplines, advertising was up 1.2%, CRM Precision marketing jumped 7.2%, CRM Execution & Support declined 13.3%, CRM Commerce and Brand Consulting declined 4.2%, CRM Experiential decreased 33.2%, Public Relations was down 3.5% and Healthcare was flat, organically, year over year.

Omnicom Group Inc. Price, Consensus and EPS Surprise

Omnicom Group Inc. Price, Consensus and EPS Surprise

Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote

Across regional markets, year-over-year decline was 1% in the United States, 6.4% in the United Kingdom, 3.2% in the Other North America, 3.2% in the Euro Markets & Other Europe, 2.4% in Latin America and 10.2% in the Middle East and Africa. Asia Pacific was up 2.5%.

Operating profit in the quarter came in at $465.4 million, up 10.8% year over year. Operating margin increased to 13.6% from the year-ago quarter’s 12.3%.

Omnicom currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are keenly awaiting first-quarter 2021 earnings of key players like Waste Connections (WCN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) . While Waste Connections will release earnings on Apr 28, Waste Management and Republic Services will report the same on Apr 27 and May 5, respectively.

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