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Omnicom (OMC) Surpasses Q1 Earnings and Revenue Estimates

Omnicom Group Inc. OMC reported solid first-quarter 2020 results, wherein the company’s earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings of $1.19 per share beat the consensus mark by 7.21% and increased 1.7% on a year-over-year basis.

Total revenues of $3.4 billion beat the consensus estimate by 0.6% but decreased 1.8% year over year on a reported basis. This year-over-year decrease came in due to a negative foreign-exchange rate impact of 1.4% and a decline in acquisition revenues, net of disposition revenues of 0.7%, partially offset by organic revenue growth of 0.3%.

Shares of Omnicom have depreciated 32.8%, over the past year, compared with the 44.9% decline of the industry it belongs to.

Other Quarterly Details

Across fundamental disciplines, advertising edged down 0.1%, CRM Consumer Experience was down 1.3%, CRM Execution & Support declined 0.9%, Public Relations inched up 0.2% and Healthcare increased 9.6%, organically, year over year.

Across regional markets, year-over-year organic growth was 1.7% in the United States, 3.7% in the United Kingdom, 2% in the Asia Pacific and 0.6% in the Other North America. The Euro Markets & Other Europe, Latin America and Middle East and Africa were down 2.3%, 5% and 28.4%, respectively.

Operating profit in the first quarter came in at $420.2 million, down 2% year over year. Operating margin decreased to 12.3% from the year-ago quarter’s 12.4%.

Omnicom currently carries a Zacks Rank #4 (Sell).

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

Performance of Other Business Services Companies

Robert Half International Inc. RHI reported first-quarter 2020 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 2.5% and were down 15% year over year. Revenues of $1.51 billion marginally beat the consensus mark, and increased 3% year over year on a reported basis and 2% on an as-adjusted basis.

Equifax Inc. EFX came up with first-quarter 2020 adjusted earnings of $1.40 per share that beat the consensus estimate by 8.5% and improved 16% on a year-over-year basis. Revenues of $957.9 million outpaced the consensus estimate by 4.2% and improved 13% year over year on a reported basis.

The Interpublic Group of Companies, Inc. IPG delivered first-quarter 2020 adjusted earnings of 11 cents per share, beating the consensus mark by 22.2%, and being flat year over year. Net revenues of $1.97 billion outpaced the consensus estimate by 1.6% but decreased 16.5% on a year-over-year basis.

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