Omnicom Group Reports Quarterly Beat; Shares Up 3.7%

Omnicom Group (NYSE: OMC) reported stronger-than-expected Q1 results, topping both earnings and revenue estimates, driven by robust organic growth across all segments and regions.

Following the quarterly beat, shares of the company gained 3.7% during the extended trading session on April 19.

Headquartered in New York City, Omnicom Group is a holding company offering global media, marketing, and corporate communications services.

Q1 Beat

Adjusted earnings of $1.39 per share beat analysts’ expectations of $1.30 per share. The company reported earnings of $1.33 per share in the prior-year period.

Revenues declined 0.5% year-over-year to $3.41 billion but exceeded consensus estimates of $3.28 billion.

Notably, organic growth increased year-over-year across all fundamental disciplines and regions.

CEO Comments

Omnicom Group CEO, John Wren, commented, “Despite uniquely challenging global events, we remain confident that our high-quality and diverse portfolio positions us strongly for future growth, both in 2022 and beyond.”

Wall Street’s Take

Following the upbeat results, JPMorgan analyst Alexia Quadrani increased the price target on Omnicom Group to $96 (18.78% upside potential) from $94 and reiterated a Buy rating.

Consensus among analysts is a Hold based on four Buys, four Holds, and two Sells. At the time of writing, the average Omnicom Group analyst price target was $89.60, which implies 10.86% upside potential to current levels.

Conclusion

Year-to-date, shares of Omnicom Group are up almost 10% despite the difficult overall macro environment. The company’s initiatives to invest in clients’ growth, as seen in the robust 11.9% organic revenue growth as well as acquisitions, bode well for the stock in the long run.

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