New York-based Omnicom Group Inc. (OMC) is one of the largest advertising, marketing, and corporate communications companies in the world. Valued at $17.5 billion by market cap, Omnicom’s services span the Americas, Europe, Asia, Australia, and Africa, providing various services, including advertising, marketing, branding, public relations, and more. Omnicom is expected to announce its fiscal Q2 earnings on Tuesday, Jul. 16.
Ahead of the event, analysts expect Omnicom to report a profit of $1.88 per share, up 3.9% from $1.81 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. Its EPS for the last reported quarter increased by 3.7% year over year to $1.67 per share and beat the consensus estimate by 9.9%. In the previous quarter, Omnicom saw a 5.4% growth in revenue compared to Q1 2023.
Looking ahead to fiscal 2024, analysts expect Omnicom to report an EPS of $7.84, up 5.8% from $7.41 in fiscal 2023. And its fiscal 2025 EPS is expected to grow 6.9% year over year to $8.38.
OMC stock is up 3.1% in 2024, substantially underperforming the S&P 500 Index’s ($SPX) 16.1% gains and S&P 500 Communication Sector SPDR’s (XLC) 18.5% returns over the same time frame.
The stock rose about 2.1% in two trading sessions after the release of its Q1 earnings report, in which the company surpassed the consensus estimates for both its top line and bottom line. In Q1, Omnicom saw a 5.4% growth in topline. Its Advertising & Media segment, which contributes to more than half of its revenue, saw an increase of 7.4%. In contrast, precision marketing, the second biggest contributor, saw a jump of 21.7% compared to Q1 2023. Additionally, Omnicom acquired Flywheel Digital, the digital commerce business of Ascential, in January, demonstrating its tilt toward growth and innovation.
The consensus opinion on Omnicom stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 11 analysts covering the stock, seven recommend a “Strong Buy,” one advises a “Moderate Buy,” two suggest a “Hold,” and one gives a “Moderate Sell.”
The average target price for Omnicom is $106.90, indicating a potential upside of 19.8% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
