Omnicom Group Inc. OMC reported solid third-quarter 2020 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.21 per share beat the consensus mark by 8%. Total revenues of $3.2 billion surpassed the consensus estimate by 2.3% but decreased 11.5% year over year on a reported basis. This year-over-year decrease occurred due to a decline in acquisition revenues, net of disposition revenues of 0.3% and a decrease in revenues due to negative organic growth of 11.7%.
Notably, the company’s shares have depreciated 39.7% year to date compared with the 37.2% decline of the industry it belongs to.
Other Quarterly Details
Across fundamental disciplines, advertising edged down 11.7%, CRM Consumer Experience was down 19.3%, CRM Execution & Support declined 19.4%, Public Relations inched down 3.4%, and Healthcare increased 3.8%, organically, year over year.
Across regional markets, year-over-year decline was 11.4% in the United States, 12.5% in the United Kingdom, 12.8% in the Asia Pacific and 7.6% in the Other North America. The Euro Markets & Other Europe, Latin America, and Middle East and Africa were down 9.6%, 22.3% and 21.4%, respectively.
Operating profit in the quarter came in at $501.4 million, up 5.9% year over year. Operating margin increased to 15.6% from the year-ago quarter’s 13.1%.
Omnicom currently carries a Zacks Rank #3 (Hold).
Performance of Other Business Services Companies
Equifax Inc. EFX reported third-quarter 2020 adjusted earnings of $1.87 per share that beat the Zacks Consensus Estimate by 16.2% and improved 26.4% on a year-over-year basis. Revenues of $1.07 billion outpaced the consensus estimate by 5.9% and improved 22% year over year.
ManpowerGroup Inc. MAN reported third-quarter 2020 earnings of $1.12 per share, beating the consensus mark by 90.5% but declining more than 37.5% year over year. Revenues of $4.58 billion surpassed the consensus mark by 8.7% but declined 12.7% year over year.
IHS Markit Ltd. INFO recorded third-quarter fiscal 2020 adjusted earnings per share of 77 cents that surpassed the consensus estimate by 11.6% and increased 15% on a year-over-year basis. Total revenues came in at $1.07 billion, marginally surpassing the consensus mark but declining 4% from the year-ago quarter.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Equifax, Inc. (EFX): Free Stock Analysis Report
ManpowerGroup Inc. (MAN): Free Stock Analysis Report
Omnicom Group Inc. (OMC): Free Stock Analysis Report
IHS Markit Ltd. (INFO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.