Omnicom (OMC) Surpasses Q3 Earnings and Revenue Estimates

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).

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

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 IncMAN 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.

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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.

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