U.S. markets closed
  • S&P 500

    3,236.92
    -78.65 (-2.37%)
     
  • Dow 30

    26,763.13
    -525.05 (-1.92%)
     
  • Nasdaq

    10,632.99
    -330.65 (-3.02%)
     
  • Russell 2000

    1,451.46
    -45.50 (-3.04%)
     
  • Crude Oil

    39.48
    -0.45 (-1.13%)
     
  • Gold

    1,861.90
    -6.50 (-0.35%)
     
  • Silver

    22.60
    -0.50 (-2.19%)
     
  • EUR/USD

    1.1665
    +0.0003 (+0.02%)
     
  • 10-Yr Bond

    0.6760
    +0.0120 (+1.81%)
     
  • GBP/USD

    1.2722
    -0.0004 (-0.03%)
     
  • USD/JPY

    105.3800
    +0.0480 (+0.05%)
     
  • BTC-USD

    10,254.51
    -287.25 (-2.72%)
     
  • CMC Crypto 200

    207.71
    -6.26 (-2.92%)
     
  • FTSE 100

    5,899.26
    +69.80 (+1.20%)
     
  • Nikkei 225

    23,346.49
    -13.81 (-0.06%)
     

Omnicom (OMC) Beats on Q2 Earnings, Revenues Lag Estimates

Zacks Equity Research

Omnicom Group Inc. OMC reported solid mixed second-quarter 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.

Adjusted earnings of 92 cents per share beat the consensus mark by 10.8% but declined 45.2% on a year-over-year basis.

Total revenues of $2.8 billion missed the consensus estimate by 3.5% but decreased 24.7% year over year on a reported basis. This year-over-year decrease came in due to a negative foreign-exchange rate impact of 1.7% and a decline in acquisition revenues, net of disposition revenues of 0.1% and a decline in revenues due to negative organic growth of 23%.

Omnicom Group Inc. Price, Consensus and EPS Surprise

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

Other Quarterly Details

Across fundamental disciplines, advertising edged down 26.6%, CRM Consumer Experience was down 25.6%, CRM Execution & Support declined 27.6%, Public Relations inched down 13.9%, and Healthcare increased 3.2%, organically, year over year.

Across regional markets, year-over-year decline was 20.7% in the United States, 23.7% in the United Kingdom, 18.6% in the Asia Pacific and 29.6% in the Other North America. The Euro Markets & Other Europe, Latin America and Middle East and Africa were down 29.4%, 24.1% and 39.4%, respectively.

Operating profit in the first quarter came in at $62.5 million, down 89.1% year over year. Operating margin decreased to 2.2% from the year-ago quarter’s 15.4%.

Omnicom currently carries a Zacks Rank #2 (Buy).

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 second-quarter 2020 adjusted earnings of $1.60 per share that beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year on a reported basis.

ManpowerGroup Inc. MAN reported mixed second-quarter 2020 earnings of 18 cents per share, beating the consensus mark by 38.5% but declining more than 100% year over year. Revenues of $3.74 billion missed the consensus mark by 1.5% and declined 30.4% year over year.

IHS Markit Ltd. INFO recorded second-quarter fiscal 2020 adjusted earnings per share of 69 cents that surpassed the consensus estimate by 6.2% but decreased 3% on a year-over-year basis. Total revenues came in at $1.03 billion, missing the consensus mark by 2.1% and declining 10% from the year-ago quarter.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks 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
 
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