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Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance.
Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year. The increase in the top line resulted from an increase of 7.5% in revenues from organic growth, partially offset by a negative impact of 6.3% due to foreign currency translations and a 1% fall in acquisition revenues and net disposition revenues.
The company’s shares have depreciated 5.5% over the past year compared with the 37.6% decline of the industry it belongs to.
Strong Organic Growth Across all Disciplines and Regions
Across fundamental disciplines, revenues from Advertising & Media were up 5.9%, Precision marketing revenues jumped 16.3%, Execution & Support revenues increased 3.9% and Commerce and Brand Consulting revenues were up 11.1%. Experiential revenues improved 2.3%, Public Relations revenues augmented 12.6%, and Healthcare revenues increased 5%, organically, year over year.
Across regional markets, year-over-year organic revenue growth was 7.6% in the United States, 11.5% in the United Kingdom, 7.7% in Other North America, 6% in the Euro Markets & Other Europe, 13.1% in Latin America and 12.2% in the Middle East and Africa. Asia Pacific was up 4.4% year over year.
Margins Increase Year Over Year
EBITA in the quarter came in at $566.1 million, up 1% year over year. EBITA margin was 16.4%, up 10 basis points (bps) year over year. Operating profit of $546 million increased nearly 1% year over year. The operating margin increased 10 bps to 15.9%.
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Omnicom's (OMC) Q3 Earnings Surpass Estimates, Increase Y/Y
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance.
Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year. The increase in the top line resulted from an increase of 7.5% in revenues from organic growth, partially offset by a negative impact of 6.3% due to foreign currency translations and a 1% fall in acquisition revenues and net disposition revenues.
The company’s shares have depreciated 5.5% over the past year compared with the 37.6% decline of the industry it belongs to.
Strong Organic Growth Across all Disciplines and Regions
Across fundamental disciplines, revenues from Advertising & Media were up 5.9%, Precision marketing revenues jumped 16.3%, Execution & Support revenues increased 3.9% and Commerce and Brand Consulting revenues were up 11.1%. Experiential revenues improved 2.3%, Public Relations revenues augmented 12.6%, and Healthcare revenues increased 5%, organically, year over year.
Across regional markets, year-over-year organic revenue growth was 7.6% in the United States, 11.5% in the United Kingdom, 7.7% in Other North America, 6% in the Euro Markets & Other Europe, 13.1% in Latin America and 12.2% in the Middle East and Africa. Asia Pacific was up 4.4% year over year.
Margins Increase Year Over Year
EBITA in the quarter came in at $566.1 million, up 1% year over year. EBITA margin was 16.4%, up 10 basis points (bps) year over year. Operating profit of $546 million increased nearly 1% year over year. The operating margin increased 10 bps to 15.9%.
Omnicom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Omnicom Group Inc. Price, Consensus and EPS Surprise
Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote
Upcoming Releases
Zacks Business Services sector players like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) will report third-quarter 2022 numbers soon.
Cross Country Healthcare will release its results on Nov 2. The stock has an expected earnings growth rate of 56.9% for the current year.
CCRN's shares have gained 67.8% in the past year. Cross Country Healthcare has a long-term earnings growth of 10%.
Waste Management will report quarterly numbers on Oct 26. The stock has an expected earnings growth rate of 17.6% for the current year.
Waste Management has a long-term earnings growth of 13.6%.
Republic Services will report results on Oct 27. The stock has an expected earnings growth rate of 14.4% for the current year.
RSG’s shares have gained 2.1% in the past year. Republic Services has a long-term earnings growth of 11.3%.