Omnicom Group Inc.’s OMC shares have lost 33.6% year to date compared with the 39.5% decline of the industry it belongs to, and 0.8% decline of the Zacks S&P 600 composite.
The company’s to-be-reported second-quarter 2020 results are likely to reflect decline in both top and bottom lines.
Expectations in Detail
The Zacks Consensus Estimate for revenues is pegged at $2.96 billion, indicating a 20.5% decline from the year-ago quarter’s actual figure. The top line is expected to predominantly reflect the impact of decline in organic revenues resulting from drastic drop in business activities due to the coronavirus pandemic.
Decline in acquisition revenues, net of disposition revenues, and unfavorable foreign exchange movements are also expected to have weighed on the top line. In the first-quarter 2020, total revenues of $3.4 billion decreased 1.8% year over year.
The Zacks Consensus Estimate for earnings calls for a pandemic-led year-over-year massive decline of 52.4%. In first-quarter 2020, adjusted earnings of $1.19 per share increased 1.7% on a year-over-year basis.
What Our Model Says
Our proven Zacks model does not conclusively predict an earnings beat for Omnicom this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Omnicom has an Earnings ESP of 0.00% and Zacks Rank #3.
Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on first-quarter 2020 earnings.
Avis Budget Group CAR has an Earnings ESP of +3.61% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booz Allen Hamilton BAH has an Earnings ESP of +0.57% and carries a Zacks Rank of 3.
Aptiv APTV has an Earnings ESP of +13.24% and currently has a Zacks Rank of 3.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
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