A month has gone by since the last earnings report for Omnicom (OMC). Shares have lost about 11.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Omnicom due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Omnicom Group Inc. before we dive into how investors and analysts have reacted as of late.
Omnicom Q3 Earnings and Revenues Beat Estimates
Omnicom reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $2.24 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a jump of 2.6% in revenues from organic growth.
OMC’s Organic Growth Across Disciplines and Regions
Across fundamental disciplines, revenues from Advertising & Media increased 9.1% organically compared with our estimated growth of 8.7%. Precision marketing revenues jumped 0.8% compared with our estimate of 6.7% growth. Experiential revenues gained 17.7% compared with our expectation of 12.2% growth.
Public Relations revenues decreased 7.5% compared with our estimation of 1.3% growth. Healthcare revenues dropped 1.9% year over year organically compared with our estimated decline of 34.1%. Branding & Retail Commerce revenues were down 16.9% compared with our estimated decline of 10.3%. Execution and support increased 2% versus our estimated growth of 2.5%.
Across regional markets, year-over-year organic revenue growth was 4.6% in the United States and 27.3% in Latin America. Revenues gained 5.9% in the Middle East & Africa and 3.7% in the U.K.
Revenues decreased 2.4% in Other North America, 2.5% in the U.K., 3.1% in Euro Markets & Other Europe, and 3.7% in Asia Pacific.
OMC’s Margin Performance
Adjusted EBITA in the quarter came in at $651 million, up 4.6% year over year. The adjusted EBITA margin was 16.1%, compared with 16% in the year-ago quarter. The operating profit of $530.1 million decreased 11.7% year over year, with the operating margin declining 240 bps to 13.1%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Omnicom has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Omnicom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Omnicom Group Inc. (OMC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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