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) Surpasses Q1 Earnings and Revenue Estimates
Read MoreHide Full Article
Omnicom Group Inc. (OMC - Free Report) reported solid first-quarter 2020 results, wherein the company’s earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings of $1.19 per share beat the consensus mark by 7.21% and increased 1.7% on a year-over-year basis.
Total revenues of $3.4 billion beat the consensus estimate by 0.6% but decreased 1.8% year over year on a reported basis. This year-over-year decrease came in due to a negative foreign-exchange rate impact of 1.4% and a decline in acquisition revenues, net of disposition revenues of 0.7%, partially offset by organic revenue growth of 0.3%.
Shares of Omnicom have depreciated 32.8%, over the past year, compared with the 44.9% decline of the industry it belongs to.
Other Quarterly Details
Across fundamental disciplines, advertising edged down 0.1%, CRM Consumer Experience was down 1.3%, CRM Execution & Support declined 0.9%, Public Relations inched up 0.2% and Healthcare increased 9.6%, organically, year over year.
Across regional markets, year-over-year organic growth was 1.7% in the United States, 3.7% in the United Kingdom, 2% in the Asia Pacific and 0.6% in the Other North America. The Euro Markets & Other Europe, Latin America and Middle East and Africa were down 2.3%, 5% and 28.4%, respectively.
Operating profit in the first quarter came in at $420.2 million, down 2% year over year. Operating margin decreased to 12.3% from the year-ago quarter’s 12.4%.
Robert Half International Inc. (RHI - Free Report) reported first-quarter 2020 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 2.5% and were down 15% year over year. Revenues of $1.51 billion marginally beat the consensus mark, and increased 3% year over year on a reported basis and 2% on an as-adjusted basis.
Equifax Inc. (EFX - Free Report) came up with first-quarter 2020 adjusted earnings of $1.40 per share that beat the consensus estimate by 8.5% and improved 16% on a year-over-year basis. Revenues of $957.9 million outpaced the consensus estimate by 4.2% and improved 13% year over year on a reported basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) delivered first-quarter 2020 adjusted earnings of 11 cents per share, beating the consensus mark by 22.2%, and being flat year over year. Net revenues of $1.97 billion outpaced the consensus estimate by 1.6% but decreased 16.5% on a year-over-year basis.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Shutterstock
Omnicom (OMC) Surpasses Q1 Earnings and Revenue Estimates
Omnicom Group Inc. (OMC - Free Report) reported solid first-quarter 2020 results, wherein the company’s earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings of $1.19 per share beat the consensus mark by 7.21% and increased 1.7% on a year-over-year basis.
Total revenues of $3.4 billion beat the consensus estimate by 0.6% but decreased 1.8% year over year on a reported basis. This year-over-year decrease came in due to a negative foreign-exchange rate impact of 1.4% and a decline in acquisition revenues, net of disposition revenues of 0.7%, partially offset by organic revenue growth of 0.3%.
Shares of Omnicom have depreciated 32.8%, over the past year, compared with the 44.9% decline of the industry it belongs to.
Other Quarterly Details
Across fundamental disciplines, advertising edged down 0.1%, CRM Consumer Experience was down 1.3%, CRM Execution & Support declined 0.9%, Public Relations inched up 0.2% and Healthcare increased 9.6%, organically, year over year.
Across regional markets, year-over-year organic growth was 1.7% in the United States, 3.7% in the United Kingdom, 2% in the Asia Pacific and 0.6% in the Other North America. The Euro Markets & Other Europe, Latin America and Middle East and Africa were down 2.3%, 5% and 28.4%, respectively.
Operating profit in the first quarter came in at $420.2 million, down 2% year over year. Operating margin decreased to 12.3% from the year-ago quarter’s 12.4%.
Omnicom currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Robert Half International Inc. (RHI - Free Report) reported first-quarter 2020 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 2.5% and were down 15% year over year. Revenues of $1.51 billion marginally beat the consensus mark, and increased 3% year over year on a reported basis and 2% on an as-adjusted basis.
Equifax Inc. (EFX - Free Report) came up with first-quarter 2020 adjusted earnings of $1.40 per share that beat the consensus estimate by 8.5% and improved 16% on a year-over-year basis. Revenues of $957.9 million outpaced the consensus estimate by 4.2% and improved 13% year over year on a reported basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) delivered first-quarter 2020 adjusted earnings of 11 cents per share, beating the consensus mark by 22.2%, and being flat year over year. Net revenues of $1.97 billion outpaced the consensus estimate by 1.6% but decreased 16.5% on a year-over-year basis.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>