Omnicom's (OMC) Q1 Earnings Beat Estimates, Increase Y/Y

Omnicom Group Inc. OMC 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 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 and Viad Corp VVI.

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.

Free Report – The Bitcoin Profit Phenomenon

Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.

No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.

Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.

Download Now – Today It’s FREE >>

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

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Waste Connections, Inc. (WCN) : Free Stock Analysis Report

Viad Corp (VVI) : 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.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.