Earnings Alerts

Omnicom Group (OMC) Earnings: 1Q Revenue and Adjusted EPS Meet Estimates Despite Operating Profit Decline

  • Omnicom’s first-quarter revenue reached $3.69 billion, marking a 1.6% increase compared to the same period last year. This was close to analysts’ estimates of $3.7 billion.
  • The company reported an adjusted earnings per share (EPS) of $1.70, which is higher than both last year’s $1.67 and the estimated $1.62.
  • Operating profit for the quarter was $452.6 million, a decrease of 5.5% from the previous year and below the expected $485.1 million.
  • Organic revenue growth was strong, showing a 3.4% increase compared to last year.
  • The operating margin stood at 12.3%, which represents a decline from the previous year’s 13.2%.
  • Analyst ratings for Omnicom include 8 buys, 4 holds, and 1 sell.

Omnicom Group on Smartkarma

Analyst coverage of Omnicom Group on Smartkarma reveals positive sentiment towards the company’s recent performance and future prospects. Baptista Research highlights Omnicom Group‘s strong third-quarter results for 2024, citing effective strategy implementation and robust financial health. The company’s organic growth rate of 6.5% is attributed to achievements in Advertising & Media and Experiential disciplines.

In another report, Harry Kalfas discusses the merger between Omnicom Group and The Interpublic Group of Companies, set to create a marketing powerhouse with $25.6 billion in revenue and anticipated annual synergies. Market caution is noted as Omnicom’s price drop narrows the deal spread, impacting major US indices. The merger’s expected close in 2025 will have intra-quarter implications on the market.


A look at Omnicom Group Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth3
Resilience3
Momentum4
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

In analyzing Omnicom Group‘s long-term outlook using the Smartkarma Smart Scores system, the company demonstrates a solid performance across key factors. With a Value score of 3, Omnicom Group is considered to have a fair valuation based on its financial metrics and market position. This suggests that the company may offer a reasonable investment opportunity relative to its current price.

Furthermore, Omnicom Group‘s above-average scores in Dividend (4), Growth (3), Resilience (3), and Momentum (4) indicate a positive outlook in terms of dividend payments, growth potential, ability to withstand economic challenges, and market momentum. These scores collectively reflect a well-rounded profile for Omnicom Group in the competitive advertising and marketing industry, positioning it as a company with stable dividends, growth opportunities, and strong market performance.

### Omnicom Group Inc. provides advertising, marketing and corporate communications services. The Company’s agencies, which operate in major markets around the world, provide a comprehensive range of services including traditional media advertising; customer relationship management (“CRM”); public relations; and specialty communications. ###


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