Sohini Mondal
2 min read
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With a market cap of $13.9 billion, Omnicom Group Inc. (OMC) offers advertising, marketing, and corporate communications services. Based in New York, the company provides a range of services in the areas of media and advertising, precision marketing, public relations, healthcare, branding and retail commerce, experiential, execution, and support.
Omnicom Group is expected to release its Q2 2025 earnings on Tuesday, Jul. 15. Ahead of this event, analysts expect OMC to report adjusted earnings of $2.02 per share, representing a growth of 3.6% from $1.95 per share reported in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in the past four quarters.
For fiscal 2025, analysts forecast Omnicom Group to report an adjusted EPS of $8.32, marking an increase of 3.2% from $8.06 in fiscal 2024. Moreover, in fiscal 2026, its earnings are expected to grow 6.9% year-over-year to $8.89 per share.
Shares of OMC have crumbled 19.7% over the past 52 weeks, significantly underperforming the S&P 500 Index's ($SPX) 12.1% rise and the Communication Services Select Sector SPDR Fund’s (XLC) 23.8% return during the same time frame.
Despite reporting solid Q1 2025 results on Apr. 15, Omnicom Group fell 7.3% in the next trading session. The company’s revenue rose 1.6% year-over-year to $3.7 billion, driven by organic growth and surpassing Street expectations. Adjusted EPS came in at $1.70, up 1.9% from the year-ago quarter, also beating analysts’ estimates by 4.3%.
However, the stock dropped as the company lowered its full-year 2025 organic growth guidance to a range of 2.5% to 4.5%, down from the prior outlook of 3.5% to 4.5%, citing economic uncertainty and its potential impact on client spending, which weighed on investor sentiment.
Analysts' consensus view on OMC is moderately optimistic, with a "Moderate Buy" rating overall. Among 11 analysts covering the stock, five suggest a "Strong Buy" and six recommend a "Hold.” As of writing, it is trading below the mean price target of $95.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
