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Omnicom (OMC) to Post Q2 Earnings: How Things Are Shaping Up

Zacks Equity Research

Omnicom Group Inc.’s OMC upcoming second-quarter 2019 results are likely to reflect year-over-year decline in revenues and flat earnings.

Shares of the company have gained 14.4% year to date, outperforming the 11.4% rally of the industry it belongs to.

 

Expectations in Detail

The Zacks Consensus Estimate for the company's revenues in the to-be-reported quarter is pegged at $3.7 billion, suggesting a 3.9% decline from the year-ago quarter’s actual figure. The top line is expected to be hurt by a decrease in acquisition revenues, net of disposition revenues, which is likely to be partially offset by higher organic revenue growth.

The Zacks Consensus Estimate pegs organic revenue growth of 2.9% in the to-be-reported quarter. The consensus mark for acquisition revenues suggestes a decline of 3% from the year-ago reported figure.

In first-quarter 2018, revenues of $3.5 billion decreased 4.4% year over year. While acquisition revenues, net of dispositions revenues declined 3.6%, organic revenue growth was 2.5%.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.6.

What Our Model Suggests?

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or #3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 or #5 (Sell-rated) stocks are best avoided, especially if they have a negative Earnings ESP. 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 a Zacks Rank #3, a combination that makes earnings surprise difficult.

Stocks That Warrant a Look

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise:

Avis Budget Group CAR currently has an Earnings ESP of +15.07% and it sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Green Dot Corporation GDOT presently carries an Earnings ESP of +7.23% and a Zacks Rank #2.

S&P Global SPGI has an Earnings ESP of +0.53% and a Zacks Rank #3 at present.

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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
 
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Omnicom Group Inc. (OMC) : Free Stock Analysis Report
 
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