With a market cap of $16.4 billion, New York-based Omnicom Group Inc. (OMC) is one of the world's largest advertising, marketing, and corporate communications companies. It continues to lead the industry with innovative solutions across diverse sectors, from social media marketing to experiential and shopper marketing. OMC is expected to unveil its fiscal Q4 earnings results on Tuesday, Feb. 4.
Before the event, analysts anticipated the advertising company to report a profit of $2.32 per share, up 5.5% from $2.20 per share in the same quarter last year. The company has consistently surpassed Wall Street's earnings projections over the previous four quarters. OMC exceeded the consensus estimate by a 3.1% margin in the most recent quarter.
For fiscal 2024, analysts anticipate OMC to report EPS of $7.94, up 7.2% from $7.41 in fiscal 2023. In addition, looking forward to fiscal 2025, its EPS is expected to grow 6.3% year-over-year to $8.44.
Over the past 52 weeks, OMC's shares have declined 4.6%, significantly underperforming the broader S&P 500 Index's ($SPX) 24.2% gain and the Communication Services Select Sector SPDR ETF Fund's (XLC) 32.9% increase over the same period.
Shares of Omnicom rose 1.4% following its Q3 earnings release on Oct. 15, driven by strong profit and revenue growth that exceeded Wall Street estimates. The company reported revenue of $3.9 billion, surpassing the consensus estimate, fueled by a 9.4% growth in its largest segment, Advertising and Media. Increased ad spending in the lead-up to the U.S. presidential election and resumed investments in brand advertising further boosted performance. Additionally, adjusted EPS of $2.03 beat expectations, and new business wins were anticipated to support continued growth, enhancing investor confidence.
Analysts' consensus rating on Omnicom stock is cautiously optimistic, with a "Moderate Buy" overall rating. Out of 28 analysts covering the stock, opinions include six "Strong Buys," three "Holds," and one "Moderate Sell." This configuration is slightly less bullish than three months ago, with seven "Strong Buy" ratings.
As of writing, OMC is trading below the average analyst price target of $113.56.
