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Here's What to Expect From Omnicom Group's (OMC) Q1 Earnings

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Omnicom Group (OMC - Free Report) is scheduled to release its first-quarter 2023 results on Apr 18 after market close.

Omnicom has had an impressive earnings surprise history. It outperformed the Zacks Consensus Estimate in the four trailing quarters, delivering an earnings surprise of 8% on average.

The Zacks Consensus Estimate of $1.37 for first-quarter 2023 has been revised downward by 1.4% in the past 30 days.

Omnicom Group Inc. Price and EPS Surprise

Omnicom Group Inc. Price and EPS Surprise

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

Q1 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $3.37 billion, slightly lower than the year-ago actual figure, mainly due to the impact of net disposition revenue over acquisition revenue. The Zacks Consensus Estimate for domestic organic growth is pegged at 5.8%, down from 10.6% reported a year ago, while international organic growth is pegged at 5.6%, down from the year-ago reported figure of 8.1%.

The Zacks Consensus Estimate for revenues from media advertising is currently pegged at $1.76 billion which indicates a slight decline from the year-ago reported figure on a year-over-year basis. The consensus mark for public relations is currently at $368 million, 2% more than the year-ago reported figure. A slight uptick is also expected in the healthcare segment, the consensus estimate of which is pegged at $313 million.  The consensus estimate for precision marketing revenues is currently pegged at $338 million, slightly above the year-ago reported figure.

Geographically, the company is expected to earn the lion’s share of its revenues from North America. The Zacks Consensus Estimate of revenues from North America is pegged at $1.88 billion, 2.2% more than the year-ago reported figure and representing 56% of the total expected revenue. The consensus estimate of revenues from North America is pegged at $986 million, marginally lower than the year-ago figure.

The bottom line is expected to have been impacted by higher operating expenses. The Zacks Consensus Estimate for the bottom line is pegged at $1.37, which is 1.4% lower than the year-over-year figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for OMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Omnicom Group has an Earnings ESP of -1.46% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

 Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on their first-quarter 2023 earnings.

Waste Connections (WCN - Free Report) currently has an ESP of +1.93% and a Zacks Rank of 3. The first-quarter 2023 results are scheduled on Apr 26 after market close.

The ZacksConsensus Estimate of the bottom line is pegged at 88 cents which is 7.3% more than the year-over-year figure. The consensus mark for revenues is $1.9 billion, implying an increase of 15.4% from the figure reported in the previous year. WCN delivered an average surprise of 3.53% in the previous four quarters.

Waste Management (WM - Free Report) currently has an ESP of +0.53% and a Zacks Rank of 3. The first-quarter 2023 results are scheduled on Apr 26 after market close.

The Zacks Consensus Estimate of the bottom line is pegged at $1.26 which is 2.3% down from the year-over-year figure. The consensus mark for revenues is $4.85 billion, up 4.1% from the figure reported in the previous year. WM came up with an average surprise of 4.7% in the previous four quarters.

Aptiv (APTV - Free Report) currently has an ESP of +1.39% and a Zacks Rank of 3. The first-quarter 2023 results are scheduled on Apr 26 before market open.

The Zacks Consensus Estimate of the bottom line is pegged at 86 cents, which is 36.5% more than the year-over-year figure. The consensus mark for revenues is $4.51 billion, up 7.9% from the figure reported in the previous year. APTV delivered a negative earnings surprise of 3.53%, on average in the previous four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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