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Why Is Omnicom (OMC) Down 14.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Omnicom (OMC - Free Report) . Shares have lost about 14.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Omnicom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Omnicom Q4 Earnings and Revenues Beat Estimates
Omnicom 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%.
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.
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 strong Growth Score of A, though it is lagging a bit on the Momentum Score front 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 A. 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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Why Is Omnicom (OMC) Down 14.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Omnicom (OMC - Free Report) . Shares have lost about 14.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Omnicom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Omnicom Q4 Earnings and Revenues Beat Estimates
Omnicom 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%.
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.
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 strong Growth Score of A, though it is lagging a bit on the Momentum Score front 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 A. 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.