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Omnicom Group Inc. (OMC - Free Report) reported impressive fourth-quarter 2023 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $2.16 per share beat the consensus estimate by 1.9% and increased 5.3% year over year. Total revenues of $4.06 billion surpassed the consensus estimate by 1.5% and increased 5% year over year.
The increase in revenues is due to 4.4% organic growth and 1.7% foreign currency translations. This was partially offset by a 0.7% decline in acquisition revenues.
Omnicom shares have gained 9.2% over the past six months against the 0.7% decline of the industry it belongs to. The Zacks S&P 500 composite recorded 9.3% growth in the same time frame .
Omnicom Group Inc. Price, Consensus and EPS Surprise
Across fundamental disciplines, revenues from Advertising & Media were up 9.3% compared with our estimated growth of 5.6%. Precision marketing revenues dipped 1.1% and Experiential revenues declined 8%.
Public Relations revenues decreased 2.9%, while Healthcare revenues increased 3.6% organically year over year compared with our suggested growth of 4.5%. Commerce and Brand Consulting revenues increased 1% compared with our anticipated growth of 2.8%. Execution and support declined 0.4% compared with our projected fall of 1.7%.
Across regional markets, year-over-year organic revenue growth was 0.6% in the United States, 5.8% in the U.K., 14.1% in Euro Markets & Other Europe, 13.7% in Latin America and 10.9% in Asia Pacific. Middle East & Africa and Other North America revenues declined 17.3% and 1.3%, respectively.
Margin Performance
EBITA in the quarter came in at $668.1 million, up 0.8% year over year. EBITA margin was 16.5%, down 60 basis points (bps) year over year. Adjusted operating profit of $661.2 million increased 2.9% year over year. The operating margin decreased 30 bps to 16.3%.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% year over year. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% year over year on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.
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Omnicom's (OMC) Q4 Earnings Beat Estimates, Increase Y/Y
Omnicom Group Inc. (OMC - Free Report) reported impressive fourth-quarter 2023 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $2.16 per share beat the consensus estimate by 1.9% and increased 5.3% year over year. Total revenues of $4.06 billion surpassed the consensus estimate by 1.5% and increased 5% year over year.
The increase in revenues is due to 4.4% organic growth and 1.7% foreign currency translations. This was partially offset by a 0.7% decline in acquisition revenues.
Omnicom shares have gained 9.2% over the past six months against the 0.7% decline of the industry it belongs to. The Zacks S&P 500 composite recorded 9.3% growth in the same time frame .
Omnicom Group Inc. Price, Consensus and EPS Surprise
Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote
Organic Growth Across Disciplines and Regions
Across fundamental disciplines, revenues from Advertising & Media were up 9.3% compared with our estimated growth of 5.6%. Precision marketing revenues dipped 1.1% and Experiential revenues declined 8%.
Public Relations revenues decreased 2.9%, while Healthcare revenues increased 3.6% organically year over year compared with our suggested growth of 4.5%. Commerce and Brand Consulting revenues increased 1% compared with our anticipated growth of 2.8%. Execution and support declined 0.4% compared with our projected fall of 1.7%.
Across regional markets, year-over-year organic revenue growth was 0.6% in the United States, 5.8% in the U.K., 14.1% in Euro Markets & Other Europe, 13.7% in Latin America and 10.9% in Asia Pacific. Middle East & Africa and Other North America revenues declined 17.3% and 1.3%, respectively.
Margin Performance
EBITA in the quarter came in at $668.1 million, up 0.8% year over year. EBITA margin was 16.5%, down 60 basis points (bps) year over year. Adjusted operating profit of $661.2 million increased 2.9% year over year. The operating margin decreased 30 bps to 16.3%.
Zacks Rank
Omnicom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% year over year. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% year over year on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.