We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Omnicom (OMC) Up 3.2% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Omnicom (OMC - Free Report) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Omnicom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Omnicom Q2 Earnings and Revenues Beat Estimates
Omnicom Group Inc. 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.
Organic Growth Across Disciplines and 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%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Omnicom has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Omnicom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Omnicom (OMC) Up 3.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Omnicom (OMC - Free Report) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Omnicom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Omnicom Q2 Earnings and Revenues Beat Estimates
Omnicom Group Inc. 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.
Organic Growth Across Disciplines and 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%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Omnicom has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Omnicom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.