U.S. Markets open in 3 hrs 4 mins

Omnicom (OMC) Surpasses Q4 Earnings and Revenue Estimates

Zacks Equity Research

Omnicom Group Inc. OMC reported solid fourth-quarter 2019 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $1.89 per share beat the consensus mark by 1% and increased 6.8% on a year-over-year basis.

Total revenues of $4.1 billion beat the consensus estimate by 1.5% and increased 1.3% year over year on a reported basis. The year-over-year increase was driven by organic revenue growth of 3.5%, partially offset by negative foreign exchange rate impact of 0.9% and a decline in acquisition revenues, net of disposition revenues of 1.2%.

Shares of Omnicom have gained 7.8% over the past year, compared with the 2.1% rise of the industry it belongs to.


Other Quarterly Details

Across fundamental disciplines, advertising increased 5.1%, CRM Consumer Experience was up 3.3%, CRM Execution & Support declined 6%, Public Relations declined 2.5% and Healthcare increased 12.9%, organically, year over year.

Across regional markets, year-over-year organic growth was 2.8% in the United States, 3.3% in the United Kingdom, 4.7% in the Euro Markets and Other Europe, 4.5% in Asia Pacific and 19.5% in Middle East and Africa. Other North America and Latin America were down 2.3% and 1.3%, respectively.

Operating profit in the quarter came in at $646.4 million, up 3.1% year over year. Operating margin increased to 15.6% from 15.3% in the year-ago quarter.

Zacks Rank & Stocks to Consider

Omnicom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like Delphi DLPH, Waste Management WM and Republic Services RSG, each scheduled to release results on Feb 13.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>

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 Management, Inc. (WM) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
Delphi Technologies PLC (DLPH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research