We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Omnicom Group Inc. (OMC - Free Report) reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
The increase in the top line was led by an increase of 4% in revenues from organic growth and a 1.5% increase in acquisition revenues, net of disposition revenues, mainly due to the Flywheel Digital acquisition in the Precision Marketing segment.
Omnicom shares have gained 22.3% over the past six months compared with 10.4% rise of the industry it belongs to and the 16.9% rally of the Zacks S&P 500 composite.
Omnicom Group Inc. Price, Consensus and EPS Surprise
Across fundamental disciplines, revenues from Advertising & Media increased 7% compared with our estimated growth of 6.4%. Precision marketing revenues jumped 4.3% compared with our estimate of 3.1% growth. Experiential revenues improved 9.5% compared with our expectation of 4.7% growth.
Public Relations revenues decreased 1.1% compared with our estimation of a 0.6% decline. Healthcare revenues increased 2.1% organically, year over year, versus our estimated growth of 3.8%. Branding & Retail Commerce revenues were down 3.8% versus our estimated growth of 1.3%. Execution and support declined 4.3% versus our estimated decline of 1.1%.
Across regional markets, year-over-year organic revenue growth was 4.3% in the United States, 3.2% in the U.K., 3.5% in Euro Markets & Other Europe, 22.3% in Latin America, 3% in Asia Pacific and 1.1% in Other North America. Middle East & Africa revenues declined 4.2%.
Margin Performance
EBITA in the quarter came in at $500.4 million, up 38.5% year over year. EBITA margin was 13.8%, up 330 basis points (bps) year over year. Operating profit of $478.9 million increased 38.2% year over year. The operating margin increased 310 bps to 13.2%.
Zacks Rank and Other Stocks to Consider
Omnicom currently carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks from the broader Zacks Business Services sector are Waste Connection (WCN - Free Report) and Viad Corp .
Viad Corp presently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 15%. VVI delivered a trailing four-quarter earnings surprise of 8%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Omnicom's (OMC) Q1 Earnings Beat Estimates, Increase Y/Y
Omnicom Group Inc. (OMC - Free Report) reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
The increase in the top line was led by an increase of 4% in revenues from organic growth and a 1.5% increase in acquisition revenues, net of disposition revenues, mainly due to the Flywheel Digital acquisition in the Precision Marketing segment.
Omnicom shares have gained 22.3% over the past six months compared with 10.4% rise of the industry it belongs to and the 16.9% rally of the Zacks S&P 500 composite.
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 increased 7% compared with our estimated growth of 6.4%. Precision marketing revenues jumped 4.3% compared with our estimate of 3.1% growth. Experiential revenues improved 9.5% compared with our expectation of 4.7% growth.
Public Relations revenues decreased 1.1% compared with our estimation of a 0.6% decline. Healthcare revenues increased 2.1% organically, year over year, versus our estimated growth of 3.8%. Branding & Retail Commerce revenues were down 3.8% versus our estimated growth of 1.3%. Execution and support declined 4.3% versus our estimated decline of 1.1%.
Across regional markets, year-over-year organic revenue growth was 4.3% in the United States, 3.2% in the U.K., 3.5% in Euro Markets & Other Europe, 22.3% in Latin America, 3% in Asia Pacific and 1.1% in Other North America. Middle East & Africa revenues declined 4.2%.
Margin Performance
EBITA in the quarter came in at $500.4 million, up 38.5% year over year. EBITA margin was 13.8%, up 330 basis points (bps) year over year. Operating profit of $478.9 million increased 38.2% year over year. The operating margin increased 310 bps to 13.2%.
Zacks Rank and Other Stocks to Consider
Omnicom currently carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks from the broader Zacks Business Services sector are Waste Connection (WCN - Free Report) and Viad Corp .
Waste Connection currently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 12.6%.WCN delivered a trailing four-quarter earnings surprise of 1.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viad Corp presently carries a Zacks Rank of 2. It has a long-term earnings growth expectation of 15%. VVI delivered a trailing four-quarter earnings surprise of 8%, on average.