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Omnicom (OMC) Earnings & Revenues Surpass Estimates in Q2
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Omnicom Group Inc. (OMC - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $1.95 per share beat the consensus estimate by 3.7% and gained 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% on a year-over-year basis.
The rise in the top line was led by an increase of 5.2% in revenues from organic growth and a 2.6% increment in acquisition revenues, net of disposition revenues, primarily due to the Flywheel Digital acquisition in the Precision Marketing segment.
Omnicom shares have gained 10.2% over the year-to-date period against the 1.9% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite has rallied 17%.
Across fundamental disciplines, revenues from Advertising & Media increased 7.8% year over year compared with our estimate of a 10% rise. Precision marketing revenues gained 1.4% compared with our estimate of 8% growth. Experiential revenues improved 17.6% compared with our estimate of an 8.1% improvement.
Public Relations revenues increased marginally year over year compared with our estimate of a 6.7% increase. Healthcare revenues rose 2% organically on a year-over-year basis against our estimate of a 27% decline. Branding & Retail Commerce revenues were down 3.8% against our estimate of 5.1% growth. Execution and Support increased 1.2% compared with our estimate of a rise of 4.1%.
Across regional markets, year-over-year organic revenue growth was 6.3% in the United States, 6.9% in the U.K., 4.5% in Euro Markets & Other Europe, 24.5% in Latin America, and marginal in Middle East & Africa. Revenues marginally declined in the Asia Pacific and 8.3% in Other North America.
Margin Performance
EBITA in the quarter amounted to $531.8 million, down 6% on a year-over-year basis. The EBITA margin was 13.8%, declining 190 basis points (bps) year over year. Operating profit of $510.3 million decreased 7.4% year over year. The operating margin decreased 210 bps to 13.2%.
FactSet Research Systems, Inc. (FDS - Free Report) reported mixed third-quarter fiscal 2024 results.
FDS’s earnings per share (excluding 28 cents from non-recurring items) of $4.4 beat the consensus mark by 11.8% and increased 15.3% from the year-ago quarter. Then again, revenues of $552.7 million missed the Zacks Consensus Estimate by a slight margin but rose 4.3% from the year-ago quarter.
ACN’s earnings (excluding 8 cents from non-recurring items) of $3.1 per share missed the Zacks Consensus Estimate marginally and decreased 1.9% from the year-ago quarter. Total revenues of $16.5 billion missed the consensus estimate by a slight margin and declined on a year-over-year basis.
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Omnicom (OMC) Earnings & Revenues Surpass Estimates in Q2
Omnicom Group Inc. (OMC - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $1.95 per share beat the consensus estimate by 3.7% and gained 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% on a year-over-year basis.
The rise in the top line was led by an increase of 5.2% in revenues from organic growth and a 2.6% increment in acquisition revenues, net of disposition revenues, primarily due to the Flywheel Digital acquisition in the Precision Marketing segment.
Omnicom shares have gained 10.2% over the year-to-date period against the 1.9% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite has rallied 17%.
Omnicom Group Inc. Price and EPS Surprise
Omnicom Group Inc. price-eps-surprise | Omnicom Group Inc. Quote
Organic Growth Across Disciplines & Regions
Across fundamental disciplines, revenues from Advertising & Media increased 7.8% year over year compared with our estimate of a 10% rise. Precision marketing revenues gained 1.4% compared with our estimate of 8% growth. Experiential revenues improved 17.6% compared with our estimate of an 8.1% improvement.
Public Relations revenues increased marginally year over year compared with our estimate of a 6.7% increase. Healthcare revenues rose 2% organically on a year-over-year basis against our estimate of a 27% decline. Branding & Retail Commerce revenues were down 3.8% against our estimate of 5.1% growth. Execution and Support increased 1.2% compared with our estimate of a rise of 4.1%.
Across regional markets, year-over-year organic revenue growth was 6.3% in the United States, 6.9% in the U.K., 4.5% in Euro Markets & Other Europe, 24.5% in Latin America, and marginal in Middle East & Africa. Revenues marginally declined in the Asia Pacific and 8.3% in Other North America.
Margin Performance
EBITA in the quarter amounted to $531.8 million, down 6% on a year-over-year basis. The EBITA margin was 13.8%, declining 190 basis points (bps) year over year. Operating profit of $510.3 million decreased 7.4% year over year. The operating margin decreased 210 bps to 13.2%.
Currently, Omnicom carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
FactSet Research Systems, Inc. (FDS - Free Report) reported mixed third-quarter fiscal 2024 results.
FDS’s earnings per share (excluding 28 cents from non-recurring items) of $4.4 beat the consensus mark by 11.8% and increased 15.3% from the year-ago quarter. Then again, revenues of $552.7 million missed the Zacks Consensus Estimate by a slight margin but rose 4.3% from the year-ago quarter.
Accenture plc (ACN - Free Report) reported lower-than-expected third-quarter fiscal 2024 results.
ACN’s earnings (excluding 8 cents from non-recurring items) of $3.1 per share missed the Zacks Consensus Estimate marginally and decreased 1.9% from the year-ago quarter. Total revenues of $16.5 billion missed the consensus estimate by a slight margin and declined on a year-over-year basis.