Omnicom Group Inc. (NYSE:OMC) reported solid fourth-quarter 2019 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.89 per share beat the consensus mark by 1% and increased 6.8% on a year-over-year basis.
Total revenues of $4.1 billion beat the consensus estimate by 1.5% and increased 1.3% year over year on a reported basis. The year-over-year increase was driven by organic revenue growth of 3.5%, partially offset by negative foreign exchange rate impact of 0.9% and a decline in acquisition revenues, net of disposition revenues of 1.2%.
Shares of Omnicom have gained 7.8% over the past year, compared with the 2.1% rise of the industry it belongs to.
Other Quarterly Details
Across fundamental disciplines, advertising increased 5.1%, CRM Consumer Experience was up 3.3%, CRM Execution & Support declined 6%, Public Relations declined 2.5% and Healthcare increased 12.9%, organically, year over year.
Across regional markets, year-over-year organic growth was 2.8% in the United States, 3.3% in the United Kingdom, 4.7% in the Euro Markets and Other Europe, 4.5% in Asia Pacific and 19.5% in Middle East and Africa. Other North America and Latin America were down 2.3% and 1.3%, respectively.
Operating profit in the quarter came in at $646.4 million, up 3.1% year over year. Operating margin increased to 15.6% from 15.3% in the year-ago quarter.
Zacks Rank & Stocks to Consider
Omnicom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like Delphi (NYSE:DLPH) , Waste Management (NYSE:WM) and Republic Services (NYSE:RSG) , each scheduled to release results on Feb 13.
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Omnicom Group Inc. (OMC): Free Stock Analysis Report
Waste Management, Inc. (WM): Free Stock Analysis Report
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Delphi Technologies PLC (DLPH): Free Stock Analysis Report
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