OMC Earnings Prediction
The chart below shows how OMC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OMC sees a -2.18% change in stock price 10 days leading up to the earnings, and a -1.79% change 10 days following the report. On the earnings day itself, the stock moves by +0.54%. This data can give you a slight idea of what to expect for the next quarter's release.
OMC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.32B
6.43%
11.32%
Gross Margin
25.87%
-0.27%
-2.01%
Operating Margin
16.19%
1.63%
4.72%
Net Margin
11.08%
-1.69%
4.92%
EPS
2.27
6.57%
16.41%
No Data Available
OMC Earnings Analysis
Omnicom Group Inc Corporation (OMC.N) Earnings Conference Call
Positive
Earnings Per Share Increase: Omnicom Group Inc. reported a non-GAAP adjusted diluted EPS of $2.41 for Q4 2024, exceeding expectations of $2.38 and reflecting a 6.6% increase compared to Q4 2023.
Organic Revenue Growth Surpassed: The company achieved organic revenue growth of 5.2% for both Q4 and the full year 2024, surpassing the high end of their guidance range of 4% to 5%.
Free Cash Flow Generation: Omnicom generated nearly $2 billion in free cash flow for the year, returning over $900 million to shareholders through dividends and share repurchases.
Strategic Acquisition Impact: The acquisition of Flywheel and the formation of new strategic practice areas contributed to the company's strong performance, with Media & Advertising, Precision Marketing, and Public Relations driving significant growth.
Strong Financial Performance: Omnicom's return on invested capital was 25% and return on equity was 38% for the 12 months ended December 31, 2024, indicating strong financial performance and a robust balance sheet.
Negative
Decline in Organic Revenue Growth: Organic revenue growth is expected to decline to a range of 3.5% to 4.5% for 2025, down from 5.2% in 2024, indicating a slowdown in growth momentum.
Healthcare Revenue Decline: Healthcare revenues decreased by 4%, reflecting challenges in client retention and performance, which may impact future revenue streams.
Branding Segment Decline: Branding and Retail Commerce segment experienced a significant decline of 12%, attributed to reduced client spending and budget reallocations, signaling potential ongoing weakness in this area.
Rising Net Interest Expense: Net interest expense rose by $11.3 million to $38.1 million in Q4 2024, primarily due to increased debt levels, which could pressure future profitability.
Currency Impact on Earnings: The negative impact of foreign exchange translation reduced adjusted diluted earnings per share by $0.02 in Q4 and $0.05 for the full year, highlighting vulnerability to currency fluctuations.
OMC FAQs
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OMC Earning Call Sentiment
Omnicom Group Inc. (NYSE:OMC) Q4 2024 Earnings Call Transcript
OMC.N
-1.56%Positive
The earnings call summary shows mixed signals: strong financial performance with EPS up 6.6% and organic growth at 5.2%, but there's cautious guidance for 2025 due to competitive pressures and regulatory risks. The Q&A reveals optimism about the merger's revenue synergies, yet the regulatory review creates uncertainty. Shareholder returns are solid, but the reduced repurchase plan is a concern. Given these factors, the stock price is likely to remain stable, leading to a neutral prediction.
