Omnicom (OMC) to Post Q2 Earnings: What’s in the Cards?

Omnicom Group (OMC) is scheduled to release its second-quarter 2023 results on Jul 18, after the bell.

Omnicom has had an impressive earnings surprise history. It outperformed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 9.1% on average. The Zacks Consensus Estimate for first-quarter 2023 earnings of $1.37 has been revised 0.3% downward in the past 30 days.

Omnicom Group Inc. Price and EPS Surprise

Omnicom Group Inc. price-eps-surprise | Omnicom Group Inc. Quote

Q2 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $3.62 billion, indicating 1.5% growth from the year-ago reported quarter. The top line is expected to have been positively impacted by organic growth, financial discipline, portfolio enhancement, and prudent capital allocation.

The bottom line is expected to have been positively impacted by operating efficiency. The Zacks Consensus Estimate of the bottom line is pegged at $1.8, indicating a 7.1% year-over-year increase.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for OMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Omnicom Group has an Earnings ESP of -2.64% and a Zacks Rank of 2.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Aptiv APTV currently has an ESP of +12.88% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is scheduled to report second-quarter 2023 results on Aug 3, before the market open.

The Zacks Consensus Estimate for the bottom line is pegged at $1.01 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.7 billion, up 15.8% from the figure reported a year ago. APTV had an average negative surprise of 11% in the previous four quarters.

Avis Budget CAR currently has an ESP of +1.46% and a Zacks Rank of 1. It is scheduled to report its second-quarter 2023 results on Jul 31, after the market close.

The Zacks Consensus Estimate for earnings is pegged at $9.78 per share, down 38.6% from the year-ago figure. The consensus mark for revenues is pegged at $3.19 billion, down 1.6% from the prior-year figure. CAR had an average surprise of 65.2% in the previous four quarters.

S&P Global SPGI currently has an ESP of +1.38% and a Zacks Rank of 3. It is scheduled to report its second-quarter 2023 results on Jul 27, before the market open.

The Zacks Consensus Estimate for the bottom line is pegged at $3.09 per share, up 10% from the year-ago reported figure. The consensus mark for revenues is pegged at $3.05 billion, up 1.9% from the prior-year reported figure. APTV had an average negative surprise of 3.1% on average in the previous four quarters.

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