Omnicom Group Inc. (OMC - Free Report) reported mixed third-quarter 2019 results wherein its earnings beat the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $1.32 per share beat the consensus mark by 2 cents and increased 6.5% on a year-over-year basis.
Total revenues of $3.6 billion missed the consensus estimate by $13 million and decreased 2.4% year over year on a reported basis. The year-over-year decrease was due to negative foreign exchange rate impact of 1.5% and decline in acquisition revenues, net of disposition revenues of 3.1%, offset by organic revenue growth of 2.2%.
Shares of Omnicom have gained 12.3% over the past year, against 8.6% decline of the industry it belongs to.
Other Quarterly Details
Across fundamental disciplines, advertising increased 3.4%, CRM Consumer Experience was up 1.8%, CRM Execution & Support declined 1.5%, Public Relations decreased 3.8% and Healthcare increased 9.5%, organically, year over year.
Across regional markets, year-over-year organic growth was 2.7% in the United States, 2.7% for Other North America, 6.6% for Latin America, 3.0% in the United Kingdom, 1.6% for the Euro Markets and Other Europe and 0.4% for Asia Pacific. Middle East and Africa was down 4.5%.
Operating profit in the quarter came in at $473.3 million. Operating margin increased to 13.1% from 12.7% in the year-ago quarter.
Zacks Rank & Stocks to Consider
Omnicom currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are CoreLogic , S&P Global (SPGI - Free Report) and Paychex (PAYX - Free Report) . While CoreLogic sports a Zacks Rank #1 (Strong Buy), S&P Global and Paychex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings (three to five years) growth rate for CoreLogic, S&P Global and Paychex is estimated at 11%, 10% and 9%, respectively.
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Omnicom Group Inc. (OMC - Free Report) reported mixed third-quarter 2019 results wherein its earnings beat the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $1.32 per share beat the consensus mark by 2 cents and increased 6.5% on a year-over-year basis.
Total revenues of $3.6 billion missed the consensus estimate by $13 million and decreased 2.4% year over year on a reported basis. The year-over-year decrease was due to negative foreign exchange rate impact of 1.5% and decline in acquisition revenues, net of disposition revenues of 3.1%, offset by organic revenue growth of 2.2%.
Shares of Omnicom have gained 12.3% over the past year, against 8.6% decline of the industry it belongs to.
Other Quarterly Details
Across fundamental disciplines, advertising increased 3.4%, CRM Consumer Experience was up 1.8%, CRM Execution & Support declined 1.5%, Public Relations decreased 3.8% and Healthcare increased 9.5%, organically, year over year.
Across regional markets, year-over-year organic growth was 2.7% in the United States, 2.7% for Other North America, 6.6% for Latin America, 3.0% in the United Kingdom, 1.6% for the Euro Markets and Other Europe and 0.4% for Asia Pacific. Middle East and Africa was down 4.5%.
Operating profit in the quarter came in at $473.3 million. Operating margin increased to 13.1% from 12.7% in the year-ago quarter.
Zacks Rank & Stocks to Consider
Omnicom currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are CoreLogic , S&P Global (SPGI - Free Report) and Paychex (PAYX - Free Report) . While CoreLogic sports a Zacks Rank #1 (Strong Buy), S&P Global and Paychex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings (three to five years) growth rate for CoreLogic, S&P Global and Paychex is estimated at 11%, 10% and 9%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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