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Omnicom Group Inc. (OMC - Free Report) reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by strong margin performance.
Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year. The decline in the top line resulted from a negative impact of 4.7% due to foreign currency translations, fall in acquisition revenues and net of disposition revenues of 6.7%, partially offset by an increase of 11.3% in revenues from organic growth.
The company’s shares have depreciated 8.5% over the past year against 33.2% decline of the industry it belongs to.
Strong Organic Growth Across all Disciplines and Regions
Across fundamental disciplines, revenues from Advertising & Media were up 8.2%, Precision marketing revenues jumped 21%, Execution & Support revenues increased 9.3%, Commerce and Brand Consulting revenues were up 11.2%, Experiential revenues improved 36.6%, Public Relations revenues augmented 15.8%, and Healthcare revenues increased 9.2%, organically, year over year.
Across regional markets, year-over-year organic revenue growth was 10.7% in the United States, 12% in the United Kingdom, 12.5% in the Other North America, 15.1% in the Euro Markets & Other Europe, 14% in Latin America, and 28.3% in the Middle East and Africa. Asia Pacific was up 4.7% year over year.
Margins Declined Year Over Year
Adjusted EBITA in the quarter came in at $562.4 million, down 4.6% year over year. Adjusted EBITA margin was 15.8%, down 70 basis points year over year. Operating profit of $541.6 million declined 4.7% year over year. Operating margin declined 70 basis points to 15.2%.
Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report their second-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.
CCRN's shares have gained 78.5% in the past year. The company has a long-term earnings growth of 6.9%.
Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.
WM’s shares have gained 5.1% in the past year. The company has a long-term earnings growth of 10.9%.
Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.
RSG’s shares have gained 12.2% in the past year. The company has a long-term earnings growth of 10.5%.
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Omnicom (OMC) Q2 Earnings Surpass Estimates, Increase Y/Y
Omnicom Group Inc. (OMC - Free Report) reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by strong margin performance.
Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year. The decline in the top line resulted from a negative impact of 4.7% due to foreign currency translations, fall in acquisition revenues and net of disposition revenues of 6.7%, partially offset by an increase of 11.3% in revenues from organic growth.
The company’s shares have depreciated 8.5% over the past year against 33.2% decline of the industry it belongs to.
Strong Organic Growth Across all Disciplines and Regions
Across fundamental disciplines, revenues from Advertising & Media were up 8.2%, Precision marketing revenues jumped 21%, Execution & Support revenues increased 9.3%, Commerce and Brand Consulting revenues were up 11.2%, Experiential revenues improved 36.6%, Public Relations revenues augmented 15.8%, and Healthcare revenues increased 9.2%, organically, year over year.
Across regional markets, year-over-year organic revenue growth was 10.7% in the United States, 12% in the United Kingdom, 12.5% in the Other North America, 15.1% in the Euro Markets & Other Europe, 14% in Latin America, and 28.3% in the Middle East and Africa. Asia Pacific was up 4.7% year over year.
Margins Declined Year Over Year
Adjusted EBITA in the quarter came in at $562.4 million, down 4.6% year over year. Adjusted EBITA margin was 15.8%, down 70 basis points year over year. Operating profit of $541.6 million declined 4.7% year over year. Operating margin declined 70 basis points to 15.2%.
Omnicom currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicom Group Inc. Price, Consensus and EPS Surprise
Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote
Upcoming Releases
Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report their second-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.
CCRN's shares have gained 78.5% in the past year. The company has a long-term earnings growth of 6.9%.
Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.
WM’s shares have gained 5.1% in the past year. The company has a long-term earnings growth of 10.9%.
Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.
RSG’s shares have gained 12.2% in the past year. The company has a long-term earnings growth of 10.5%.