Omnicom Group Earnings: Here’s Why Investors are Buying Shares Now
Omnicom Group Inc. (NYSE:OMC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.
Omnicom Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 6.86% to $1.09 in the quarter versus EPS of $1.02 in the year-earlier quarter.
Revenue: Rose 2.13% to $3.64 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Omnicom Group Inc. reported adjusted EPS income of $1.09 per share. By that measure, the company beat the mean analyst estimate of $1.08. It missed the average revenue estimate of $3.65 billion.
Quoting Management: “On a global basis, our top and bottom line was consistent with our internal forecast. And as you can see in our deck, organic growth was 2.8%, and margins increased during the quarter.
Regionally, our performance broadly reflected the different macroeconomic conditions in global markets. Our business in the United States continues to grow at a steady pace that is slightly faster than the overall economy. In Asia and Latin America, we’re experiencing stronger growth. And as you might expect, the Eurozone remains a key geographic challenge.” said John D. Wren, Chief Executive Officer, President and Director.
Key Stats (on next page)…
Revenue increased 7.01% from $3.4 billion in the previous quarter. EPS increased 43.42% from $0.76 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.84 and has not changed. For the current year, the average estimate has moved down from a profit of $3.92 to a profit of $3.91 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)