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Omnicom (OMC) Q2 Earnings Surpass Estimates, Increase Y/Y

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Omnicom Group Inc. (OMC - Free Report) reported impressive second-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Earnings of $1.46 per share beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.

The top line was driven by increase in revenues from organic growth of 24.4% and positive impact of 5.4% due to foreign currency translations, but partially offset by a fall in acquisition revenues and net of disposition revenues of 2.2%.

The company’s shares have appreciated 22.4% year to date, underperforming the 7.8% growth of the industry it belongs to.

Other Quarterly Details

Across fundamental disciplines, advertising was up 29.8%, CRM Precision marketing jumped 25%, CRM Execution & Support increased 22.7%, CRM Commerce and Brand Consulting was up 15.2%, CRM Experiential improved 53%, Public Relations was up 15.1% and Healthcare increased 4.5%, organically, year over year.

Across regional markets, year-over-year growth was 19.9% in the United States, 23.8% in the United Kingdom, 37.1 % in the Other North America, 34.5% in the Euro Markets & Other Europe, 20.8% in Latin America and 42.8% in the Middle East and Africa. Asia Pacific was up 27.9% year over year.

Operating profit in the quarter came in at $568.4 million, compared with 62.5 million in the year-ago quarter. Operating margin increased to 15.9% from the year-ago quarter’s 2.2%.

Omnicom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are keenly awaiting second-quarter 2021 earnings reports of key players like Waste Connections (WCN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) . While Waste Connections will release results on Aug 4, Waste Management and Republic Services will report the same on Jul 27 and Jul 29, respectively.