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Omnicom (OMC) Q4 Earnings and Revenues Surpass Estimates

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Omnicom Group Inc. (OMC - Free Report) reported solid fourth-quarter 2020 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $1.9 per share beat the consensus mark by 14.5% and increased marginally year over year. Total revenues of $3.8 billion marginally surpassed the consensus estimate but decreased 9.3% year over year. This year-over-year decrease occurred due to a fall in acquisition revenues, net of disposition revenues of 0.5% and a decrease in revenues due to negative organic growth of 9.6%.

Notably, the company’s shares have depreciated 14.6% over the past year compared with 10.8% decline of the industry it belongs to.

Other Quarterly Details

Across fundamental disciplines, advertising edged down 9.7%, CRM Consumer Experience was down 15.8%, CRM Execution & Support declined 13.7% and Healthcare decreased 2%, organically, year over year. Public Relations inched up marginally.

Across regional markets, year-over-year decline was 9.4% in the United States, 12.4% in the United Kingdom, 3.9% in the Asia Pacific, 3.2% in the Other North America, 9.2% in the Euro Markets & Other Europe, 9.2% in Latin America and 36.8% in the Middle East and Africa.

Operating profit in the quarter came in at $614.7 million, down 4.9% year over year. Operating margin increased to 16.4% from the year-ago quarter’s 15.6%.

Omnicom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year-over-year.

IHS Markit’s  fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Esimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.

Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.

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