Zacks Research Lifts Earnings Estimates for Omnicom Group

Key Points

• Zacks Research has raised its FY2025 earnings estimate for Omnicom Group from $8.18 to $8.29 per share, reflecting positive outlook adjustments for the business services provider.
• Omnicom Group is set to pay a quarterly dividend of $0.70 on October 10, 2023, with a current dividend yield of 3.8%.
• Analysts' ratings for Omnicom Group vary, with four holding a "hold" rating and four giving a "buy" rating, resulting in an average rating of "Moderate Buy" and a target price of approximately $94.43.

Omnicom Group Inc. (NYSE:OMC - Free Report) - Stock analysts at Zacks Research lifted their FY2025 earnings estimates for shares of Omnicom Group in a research report issued to clients and investors on Tuesday, August 5th. Zacks Research analyst S. Dey now expects that the business services provider will post earnings per share of $8.29 for the year, up from their prior estimate of $8.18. The consensus estimate for Omnicom Group's current full-year earnings is $8.25 per share. Zacks Research also issued estimates for Omnicom Group's Q4 2025 earnings at $2.46 EPS, Q3 2026 earnings at $2.26 EPS and Q4 2026 earnings at $2.53 EPS.

Other analysts have also recently issued reports about the stock. Bank of America raised shares of Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 price target on the stock in a report on Monday, June 23rd. Wells Fargo & Company dropped their target price on shares of Omnicom Group from $84.00 to $78.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 16th. Barclays cut shares of Omnicom Group from an "overweight" rating to an "equal weight" rating and reduced their price target for the stock from $105.00 to $80.00 in a research report on Wednesday, June 25th. Citigroup reissued a "buy" rating and issued a $103.00 price objective on shares of Omnicom Group in a report on Tuesday, April 15th. Finally, JPMorgan Chase & Co. reduced their target price on Omnicom Group from $104.00 to $96.00 and set an "overweight" rating on the stock in a report on Thursday, July 10th. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $94.43.

Omnicom Group Stock Performance

Shares of OMC opened at $73.05 on Thursday. The firm has a market cap of $14.15 billion, a price-to-earnings ratio of 10.48, a PEG ratio of 1.44 and a beta of 0.94. The company has a quick ratio of 0.80, a current ratio of 0.92 and a debt-to-equity ratio of 0.97. The business's 50 day moving average is $72.48 and its two-hundred day moving average is $77.05. Omnicom Group has a 52-week low of $68.37 and a 52-week high of $107.00.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings results on Tuesday, July 15th. The business services provider reported $2.05 EPS for the quarter, topping the consensus estimate of $2.02 by $0.03. Omnicom Group had a return on equity of 33.62% and a net margin of 8.67%. The business had revenue of $4.02 billion for the quarter, compared to analysts' expectations of $3.95 billion. During the same quarter in the previous year, the firm posted $1.95 earnings per share. The company's revenue was up 4.2% compared to the same quarter last year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Johnson Financial Group Inc. grew its position in shares of Omnicom Group by 153.8% during the fourth quarter. Johnson Financial Group Inc. now owns 330 shares of the business services provider's stock worth $29,000 after acquiring an additional 200 shares during the last quarter. Harbor Asset Planning Inc. bought a new position in Omnicom Group in the 2nd quarter worth approximately $29,000. Zions Bancorporation National Association UT bought a new stake in Omnicom Group during the 1st quarter valued at $34,000. Ameritas Advisory Services LLC acquired a new position in Omnicom Group during the 2nd quarter worth $34,000. Finally, Gen Wealth Partners Inc bought a new position in shares of Omnicom Group in the first quarter worth $36,000. Institutional investors and hedge funds own 91.97% of the company's stock.

Omnicom Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Tuesday, September 2nd will be issued a $0.70 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $2.80 annualized dividend and a dividend yield of 3.8%. Omnicom Group's dividend payout ratio (DPR) is 40.17%.

About Omnicom Group

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.

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