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Omnicom (OMC) Q4 Earnings Surpass Estimates, Increase Y/Y

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

Earnings of $1.95 per share beat the consensus mark by 13.4% and increased 2.6% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 5% and increased 2.6% year over year.

The top line was driven by an increase in revenues from organic growth of 9.5%, partially offset by the negative impact of 0.3% due to foreign currency translations, fall in acquisition revenues and net of disposition revenues of 6.6%.

The company’s shares have appreciated 18.3% over the past year against 0.3% decline of the industry it belongs to.

Other Quarterly Details

Across fundamental disciplines, revenues from advertising were up 7.4%, Precision marketing revenues jumped 19.6%, Execution & Support revenues increased 5.2%, Commerce and Brand Consulting revenues were up 12.4%, Experiential revenues improved 56.7%, Public Relations revenues augmented 4.4% and Healthcare revenues increased 4.5%, organically, year over year.

Across regional markets, year-over-year organic revenue growth was 7.8% in the United States, 10.1% in the United Kingdom, 1.8% in the Other North America, 12.7% in the Euro Markets & Other Europe, 7.3% in Latin America and 48.1% in the Middle East and Africa. Asia Pacific was up 7.8% year over year.

EBITA in the quarter came in at $642.7 million, up 1.1% year over year. EBITA margin of 16.7% declined 20 basis points (bps) year over year. Operating income increased 1.3% year over year to 622.5 million. Operating margin declined 30 bps year over year.

Omnicom currently carries a Zacks Rank #3 (Hold).

Omnicom Group Inc. Price, Consensus and EPS Surprise Omnicom Group Inc. Price, Consensus and EPS Surprise

Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote

Performance of Some Other Business Services Companies

Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.

Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.

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