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Omnicom (OMC) Q2 Earnings Surpass Estimates, Increase Y/Y

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Omnicom Group Inc. OMC reported impressive second-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Earnings of $1.46 per share beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.

The top line was driven by increase in revenues from organic growth of 24.4% and positive impact of 5.4% due to foreign currency translations, but partially offset by a fall in acquisition revenues and net of disposition revenues of 2.2%.

The company’s shares have appreciated 22.4% year to date, underperforming the 7.8% growth of the industry it belongs to.

Omnicom Group Inc. Price

Omnicom Group Inc. Price
Omnicom Group Inc. Price

Omnicom Group Inc. price | Omnicom Group Inc. Quote

Other Quarterly Details

Across fundamental disciplines, advertising was up 29.8%, CRM Precision marketing jumped 25%, CRM Execution & Support increased 22.7%, CRM Commerce and Brand Consulting was up 15.2%, CRM Experiential improved 53%, Public Relations was up 15.1% and Healthcare increased 4.5%, organically, year over year.

Across regional markets, year-over-year growth was 19.9% in the United States, 23.8% in the United Kingdom, 37.1 % in the Other North America, 34.5% in the Euro Markets & Other Europe, 20.8% in Latin America and 42.8% in the Middle East and Africa. Asia Pacific was up 27.9% year over year.

Operating profit in the quarter came in at $568.4 million, compared with 62.5 million in the year-ago quarter. Operating margin increased to 15.9% from the year-ago quarter’s 2.2%.

Omnicom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are keenly awaiting second-quarter 2021 earnings reports of key players like Waste Connections WCN, Waste Management WM and Republic Services RSG. While Waste Connections will release results on Aug 4, Waste Management and Republic Services will report the same on Jul 27 and Jul 29, respectively.

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

Waste Management, Inc. (WM) : Free Stock Analysis Report

Republic Services, Inc. (RSG) : Free Stock Analysis Report

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

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