Latest news with #Omnicom
Reuters
4 days ago
- Business
- Reuters
Omnicom tops revenue estimates on strong growth in advertising unit
July 15 (Reuters) - Advertising firm Omnicom (OMC.N), opens new tab on Tuesday beat Wall Street estimates for the second quarter, fueled by growth in its advertising and media segment. Shares of the company rose 2.2% in trading after the bell. The ad firm's results stayed immune to the ongoing macroeconomic and geopolitical uncertainty, helped by continued spending by businesses on Omnicom's services. Omnicom, which is leveraging AI in driving campaigns, is a marketing and communications firm that offers advertising, digital marketing solutions and branding to large corporations and government agencies across various sectors. The company's media and advertising segment, its largest by revenue, posted a growth of 8.2% in the second quarter. Omnicom's revenue stood at $4.02 billion in the quarter ended June 30, compared with analysts' average estimate of $3.96 billion, according to data compiled by LSEG. The company said it expects to close its acquisition of Interpublic Group of Companies (IPG.N), opens new tab in the second half of the year, as it cleared U.S. antitrust review. On an adjusted basis, it earned $2.05 per share, compared with expectations of $2.00.
Yahoo
5 days ago
- Business
- Yahoo
Omnicom (OMC) Reports Q2 Earnings: What Key Metrics Have to Say
Omnicom (OMC) reported $4.02 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 4.2%. EPS of $2.05 for the same period compares to $1.95 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.95 billion, representing a surprise of +1.57%. The company delivered an EPS surprise of +1.49%, with the consensus EPS estimate being $2.02. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Omnicom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Organic Revenue Growth: 3% compared to the 3.3% average estimate based on three analysts. Organic Revenue Growth by Geography- Other North America: 2.4% versus 2.7% estimated by two analysts on average. Organic Revenue Growth - Healthcare: -4.9% versus the two-analyst average estimate of 0.8%. Organic Revenue Growth - Commerce & Branding: -16.9% compared to the -3.6% average estimate based on two analysts. Revenue by Geography- United States: $2.09 billion compared to the $2.09 billion average estimate based on three analysts. Revenue by Geography- United Kingdom: $434 million versus $426.94 million estimated by two analysts on average. Revenue by Geography- Asia Pacific: $458.8 million versus the two-analyst average estimate of $459.25 million. The reported number represents a year-over-year change of +6.3%. Revenue by Geography- Other North America: $116.2 million compared to the $119.12 million average estimate based on two analysts. Revenue- Commerce & Branding: $148.6 million compared to the $183.23 million average estimate based on two analysts. The reported number represents a change of -25.4% year over year. Revenue- Execution & Support: $216.3 million versus $209.1 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.3% change. Revenue- Healthcare: $332.6 million compared to the $303.04 million average estimate based on two analysts. The reported number represents a change of -5.8% year over year. Revenue- Public Relations: $372.9 million versus the two-analyst average estimate of $425.11 million. The reported number represents a year-over-year change of -10.8%. View all Key Company Metrics for Omnicom here>>> Shares of Omnicom have returned +2.8% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
5 days ago
- Business
- Yahoo
Omnicom Group (NYSE:OMC) Exceeds Q2 Expectations
Global advertising giant Omnicom Group (NYSE:OMC) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 4.2% year on year to $4.02 billion. Its non-GAAP profit of $2.05 per share was 0.8% above analysts' consensus estimates. Is now the time to buy Omnicom Group? Find out in our full research report. Revenue: $4.02 billion vs analyst estimates of $3.97 billion (4.2% year-on-year growth, 1.2% beat) Adjusted EPS: $2.05 vs analyst estimates of $2.03 (0.8% beat) Adjusted EBITDA: $613.8 million vs analyst estimates of $632.7 million (15.3% margin, 3% miss) Operating Margin: 10.9%, down from 13.2% in the same quarter last year Organic Revenue rose 3% year on year (5.2% in the same quarter last year) Market Capitalization: $14.17 billion "We delivered solid 3.0% organic revenue growth this quarter even in the face of ongoing macroeconomic and geopolitical uncertainty - underscoring once again the resilience and agility of our business," said John Wren, Chairman and Chief Executive Officer of Omnicom. With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE:OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $15.91 billion in revenue over the past 12 months, Omnicom Group is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it's harder to find incremental growth when you've penetrated most of the market. To accelerate sales, Omnicom Group likely needs to optimize its pricing or lean into new offerings and international expansion. As you can see below, Omnicom Group's 2.6% annualized revenue growth over the last five years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Omnicom Group's annualized revenue growth of 5.2% over the last two years is above its five-year trend, suggesting some bright spots. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Omnicom Group's organic revenue averaged 4.4% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Omnicom Group reported modest year-on-year revenue growth of 4.2% but beat Wall Street's estimates by 1.2%. Looking ahead, sell-side analysts expect revenue to grow 2.6% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Omnicom Group has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, boasting an average operating margin of 14.5%. Looking at the trend in its profitability, Omnicom Group's operating margin decreased by 1.7 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q2, Omnicom Group generated an operating margin profit margin of 10.9%, down 2.3 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Omnicom Group's EPS grew at a solid 9% compounded annual growth rate over the last five years, higher than its 2.6% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. Diving into Omnicom Group's quality of earnings can give us a better understanding of its performance. A five-year view shows that Omnicom Group has repurchased its stock, shrinking its share count by 8.7%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. In Q2, Omnicom Group reported EPS at $2.05, up from $1.95 in the same quarter last year. This print was close to analysts' estimates. Over the next 12 months, Wall Street expects Omnicom Group's full-year EPS of $8.19 to grow 5.9%. It was good to see Omnicom Group narrowly top analysts' revenue and EPS expectations this quarter. On the other hand, its EBITDA missed. Still, this print had some key positives. The stock traded up 2% to $72.25 immediately after reporting. Is Omnicom Group an attractive investment opportunity at the current price? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Omnicom Posts Lower Earnings Amid Interpublic Acquisition
Omnicom OMC -2.57%decrease; red down pointing triangle reported a lower profit for the second quarter, citing increased costs from its acquisition of rival Interpublic Group and severance actions stemming from efficiency initiatives. The advertising and media company reported $257.6 million in net income, or $1.31 a share, down from $328.1 million, or $1.65 a share, from the prior year.
Yahoo
5 days ago
- Business
- Yahoo
Omnicom tops revenue estimates on strong growth in advertising unit
(Reuters) -Advertising firm Omnicom on Tuesday beat Wall Street estimates for the second quarter, fueled by growth in its advertising and media segment. Shares of the company rose 2.2% in trading after the bell. The ad firm's results stayed immune to the ongoing macroeconomic and geopolitical uncertainty, helped by continued spending by businesses on Omnicom's services. Omnicom, which is leveraging AI in driving campaigns, is a marketing and communications firm that offers advertising, digital marketing solutions and branding to large corporations and government agencies across various sectors. The company's media and advertising segment, its largest by revenue, posted a growth of 8.2% in the second quarter. Omnicom's revenue stood at $4.02 billion in the quarter ended June 30, compared with analysts' average estimate of $3.96 billion, according to data compiled by LSEG. The company said it expects to close its acquisition of Interpublic Group of Companies in the second half of the year, as it cleared U.S. antitrust review. On an adjusted basis, it earned $2.05 per share, compared with expectations of $2.00.
