Category: OMC

OMC – Omnicom (OMC) Down 1% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Omnicom (OMC Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Omnicom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Omnicom Q2 Earnings and Revenues Beat Estimates

Omnicom 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%.

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%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -8.25% due to these changes.

VGM Scores

Currently, Omnicom has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren’t focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Omnicom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

OMC – Allianz Establishes New Agency Ecosystem with Multi-Year Agreement with Omnicom Group

NEW YORK, April 6, 2021 /PRNewswire/ — Omnicom Group (NYSE: OMC) today announced it has signed a multi-year agreement with Allianz, a leading financial services provider, for creative development and production services. Through this master framework agreement, Omnicom will produce work for Allianz on a global and local level, offering creative solutions to activate the global brand strategy for the more than 70 countries Allianz operates in.

The global relationship will be managed by the “A-Lab”, a specially formed, multi-disciplinary team of leaders who will lead, direct and align all brand activities from a strategy, creative, audience and data perspective. In an open ecosystem approach, the “A-Lab” will pull together teams for individual projects with best-in-class capabilities from Omnicom and beyond.

“We are thrilled to partner with Allianz to further strengthen its brand, with a focus on increasing its role in the lives of consumers around the world,” said Asit Mehra, Executive Vice President at Omnicom Group. “We’re leveraging Omnicom’s global scale and stand-out creativity to create a nimble, flexible and bespoke solution, led by the ‘A-Lab’. With the full power of Omnicom being tapped, we’re ready to help Allianz continue building prominence worldwide.” 

Allianz continues to rapidly build its brand across the globe. In Interbrand’s 2020 ranking of Best Global Brands, Allianz emerged as the top insurance brand in the world for the second year in a row. In just ten years, Allianz moved from 67th place on the list with a brand value of $4.9 billion in 2010, to 39th place with a brand value of almost $13 billion in 2020. The quick growth highlights its amounting strength, and the company has set a goal to become a Top 25 brand by 2025.

The agreement with Omnicom comes after an intense pitch process involving a number of industry competitors and several months of deliberation. Omnicom will kick off its creative solutions for Allianz in the second quarter of 2021.

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 70 countries. Follow us on Twitter for the latest news.

About Allianz
The Allianz Group is one of the world’s leading insurers and asset managers with more than 100 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 790 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage 1.7 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of 140 billion euros and an operating profit of 10.8 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

*Including non-consolidated entities with Allianz customers.

SOURCE Omnicom Group Inc.

Related Links

http://www.omnicomgroup.com

OMC – Is Omnicom (OMC) a Great Value Stock Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system’s “Value” category. Stocks with both “A” grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Omnicom (OMC Free Report) is a stock many investors are watching right now. OMC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.61 right now. For comparison, its industry sports an average P/E of 15.93. OMC’s Forward P/E has been as high as 13.18 and as low as 8.05, with a median of 10.86, all within the past year.

We should also highlight that OMC has a P/B ratio of 4.59. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. This company’s current P/B looks solid when compared to its industry’s average P/B of 11.51. Within the past 52 weeks, OMC’s P/B has been as high as 4.68 and as low as 3.15, with a median of 4.02.

Finally, we should also recognize that OMC has a P/CF ratio of 14.21. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 16.10. Within the past 12 months, OMC’s P/CF has been as high as 14.49 and as low as 6.90, with a median of 10.07.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Omnicom is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OMC feels like a great value stock at the moment.

OMC – Omnicom (OMC) Up 14.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Omnicom (OMC Free Report) . Shares have added about 14.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Omnicom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Omnicom  Q4 Earnings and Revenues Surpass Estimates

Omnicom reported solid fourth-quarter 2020 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $1.9 per share beat the consensus mark by 14.5% and increased marginally year over year. Total revenues of $3.8 billion marginally surpassed the consensus estimate but decreased 9.3% year over year. This year-over-year decrease occurred due to a fall in acquisition revenues, net of disposition revenues of 0.5% and a decrease in revenues due to negative organic growth of 9.6%.

Other Quarterly Details

Across fundamental disciplines, advertising edged down 9.7%, CRM Consumer Experience was down 15.8%, CRM Execution & Support declined 13.7% and Healthcare decreased 2%, organically, year over year. Public Relations inched up marginally.

Across regional markets, year-over-year decline was 9.4% in the United States, 12.4% in the United Kingdom, 3.9% in the Asia Pacific, 3.2% in the Other North America, 9.2% in the Euro Markets & Other Europe, 9.2% in Latin America and 36.8% in the Middle East and Africa.

Operating profit in the quarter came in at $614.7 million, down 4.9% year over year. Operating margin increased to 16.4% from the year-ago quarter’s 15.6%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

Currently, Omnicom has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren’t focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Omnicom has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

OMC – Omnicom Group: Q4 Earnings Insights

Shares of Omnicom Group (NYSE:OMC) remained unaffected after the company reported Q4 results.

Quarterly Results

Earnings per share increased 0.53% year over year to $1.90, which beat the estimate of $1.65.

Revenue of $3,757,000,000 declined by 9.25% from the same period last year, which beat the estimate of $3,690,000,000.

Guidance

Omnicom Group hasn’t issued any earnings guidance for the time being.

Omnicom Group hasn’t issued any revenue guidance for the time being.

How To Listen To The Conference Call

Date: Feb 18, 2021

Time: 08:30 AM

ET Webcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Finvestor.omnicomgroup.com%2F&eventid=2947578&sessionid=1&key=055AC9C7A72D90D999301D06FF4A5251&regTag=&V2=false&sourcepage=register

Price Action

52-week high: $79.75

Company’s 52-week low was at $44.50

Price action over last quarter: Up 45.43%

Company Description

Omnicom is the world’s second- largest ad holding company, based on annual revenue. The American firm’s services, which include traditional and digital advertising and public relations, are provided worldwide, with over 85% of its revenue coming from more developed regions such as North America and Europe.