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Omnicom (OMC) Up 2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Omnicom (OMC - Free Report) . Shares have added about 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 the most recent earnings report in order to get a better handle on the important drivers.
Omnicom Q1 Earnings and Revenues Beat Estimates
Omnicom reported impressive first-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year. This year-over-year increase occurred due to positive impact of foreign currency translation of 2.8%, offset by a fall in acquisition revenues, net of disposition revenues of 0.4% and a decrease in revenues due to negative organic growth of 1.8%.
Other Quarterly Details
Across fundamental disciplines, advertising was up 1.2%, CRM Precision marketing jumped 7.2%, CRM Execution & Support declined 13.3%, CRM Commerce and Brand Consulting declined 4.2%, CRM Experiential decreased 33.2%, Public Relations was down 3.5% and Healthcare was flat, organically, year over year.
Across regional markets, year-over-year decline was 1% in the United States, 6.4% in the United Kingdom, 3.2% in the Other North America, 3.2% in the Euro Markets & Other Europe, 2.4% in Latin America and 10.2% in the Middle East and Africa. Asia Pacific was up 2.5%.
Operating profit in the quarter came in at $465.4 million, up 10.8% year over year. Operating margin increased to 13.6% from the year-ago quarter’s 12.3%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Omnicom has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Omnicom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Omnicom (OMC) Up 2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Omnicom (OMC - Free Report) . Shares have added about 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 the most recent earnings report in order to get a better handle on the important drivers.
Omnicom Q1 Earnings and Revenues Beat Estimates
Omnicom reported impressive first-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year. This year-over-year increase occurred due to positive impact of foreign currency translation of 2.8%, offset by a fall in acquisition revenues, net of disposition revenues of 0.4% and a decrease in revenues due to negative organic growth of 1.8%.
Other Quarterly Details
Across fundamental disciplines, advertising was up 1.2%, CRM Precision marketing jumped 7.2%, CRM Execution & Support declined 13.3%, CRM Commerce and Brand Consulting declined 4.2%, CRM Experiential decreased 33.2%, Public Relations was down 3.5% and Healthcare was flat, organically, year over year.
Across regional markets, year-over-year decline was 1% in the United States, 6.4% in the United Kingdom, 3.2% in the Other North America, 3.2% in the Euro Markets & Other Europe, 2.4% in Latin America and 10.2% in the Middle East and Africa. Asia Pacific was up 2.5%.
Operating profit in the quarter came in at $465.4 million, up 10.8% year over year. Operating margin increased to 13.6% from the year-ago quarter’s 12.3%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Omnicom has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Omnicom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.