Back to top

Image: Bigstock

Omnicom's (OMC) Q4 Earnings Beat Estimates, Increase Y/Y

Read MoreHide Full Article

Omnicom Group Inc. (OMC - Free Report) reported impressive fourth-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Earnings of $2.09 per share beat the consensus mark by 7.7% and increased 7.2% year over year, driven by a strong margin performance. Total revenues of $3.9 billion surpassed the consensus estimate by 4.9% and increased slightly year over year.

The increase in the top line resulted from an increase of 7.2% in revenues from organic growth, partially offset by a negative impact of 5.5% due to foreign currency translations and a 1.4% fall in acquisition revenues, net of disposition revenues.

Organic Growth Across Disciplines and Regions

Across fundamental disciplines, revenues from Advertising & Media were up 6%, Precision marketing revenues jumped 11.6%, Execution & Support revenues decreased 2.8%, and Commerce and Brand Consulting revenues were up 7.2%. Experiential revenues improved 17%, Public Relations revenues augmented 12.7% and Healthcare revenues increased 6.4%, organically, year over year.

Across regional markets, year-over-year organic revenue growth was 5.6% in the United States, 9.9% in the U.K., 7.3% in Other North America, 5.1% in the Euro Markets & Other Europe, 18.2% in Latin America, and 32.6% in the Middle East and Africa. The Asia Pacific was up 6.9% year over year.

Margin Performance

EBITA in the quarter was $662.7 million, up 3.1% year over year. The EBITA margin was 17.1%, up 40 basis points (bps) year over year. Operating profit of $642.7 million increased 3.2% year over year. The operating margin increased 50 bps to 16.6%.

Omnicom currently sports a Zacks Rank #1 (Strong Buy). 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 and EPS Surprise

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

Performances of Some Other Service Providers

Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. (ADP - Free Report)  reported better-than-expected second-quarter fiscal 2023 results.

ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter.

Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.

Published in