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Omnicom (OMC) Beats Q2 Earnings Estimates, Lags Revenues

Omnicom Group Inc.OMC reported second-quarter 2018 (ended Jun 30, 2018) earnings per share of $1.60 beating the Zacks Consensus Estimate of $1.54. Earnings also increased 14.3% on a year-over-year basis.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for Omnicom depicted a pessimistic picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter 2018 earnings move down 1.3% over the last 60 days.

However, the company has an impressive earnings history having outperformed the Zacks Consensus Estimate in all of the last four quarters with an average beat of 3.2%.

Omnicom Group Inc. Price and EPS Surprise

Omnicom Group Inc. Price and EPS Surprise | Omnicom Group Inc. Quote

Revenues Lower Than Expected

Omnicom recorded revenues of $3,859.6 million which underperformed the Zacks Consensus Estimate of $3,893.2 million. However, revenues compared favorably with the year-ago figure of $3,790.1 million.

Key Stats to Note : Omnicom reported organic growth of 2.0% in second-quarter 2018 compared with 2.4% organic growth in first-quarter 2018. As a result of the new tax law (Tax Cuts and Jobs Act), the company enjoyed a lower income tax rate of 25.8% in the reported quarter compared to 32.0% in the year-ago quarter.

Zacks Rank : Currently, Omnicom has a Zacks Rank #4 (Sell) but that could change following the company's earnings report which was just released.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Omnicom earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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