Omnicom Group (NYSE:OMC) Posts Quarterly Earnings Results, Misses Estimates By $6.62 EPS

Omnicom Group (NYSE:OMC) issued its quarterly earnings results on Wednesday. The business services provider reported ($4.03) earnings per share for the quarter, missing analysts’ consensus estimates of $2.59 by ($6.62), Zacks reports. Omnicom Group had a return on equity of 33.30% and a net margin of 8.31%.

Omnicom Group Trading Up 3.3%

Shares of NYSE:OMC traded up $2.21 during midday trading on Wednesday, hitting $70.19. 4,921,187 shares of the stock were exchanged, compared to its average volume of 4,235,488. The business’s 50-day moving average price is $77.16 and its 200 day moving average price is $76.30. Omnicom Group has a 12 month low of $66.33 and a 12 month high of $89.27. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.80 and a current ratio of 0.92. The stock has a market capitalization of $13.55 billion, a price-to-earnings ratio of 10.37, a P/E/G ratio of 1.08 and a beta of 0.74.

Omnicom Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 9th. Stockholders of record on Friday, December 19th were issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 4.6%. This is an increase from Omnicom Group’s previous quarterly dividend of $0.70. The ex-dividend date was Friday, December 19th. Omnicom Group’s dividend payout ratio (DPR) is presently 47.27%.

Analyst Ratings Changes

Several research firms have weighed in on OMC. Barclays upped their target price on Omnicom Group from $80.00 to $82.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 23rd. UBS Group upped their price objective on Omnicom Group from $99.00 to $108.00 and gave the stock a “buy” rating in a research report on Friday, December 5th. Morgan Stanley initiated coverage on Omnicom Group in a research report on Tuesday, December 16th. They issued an “equal weight” rating and a $88.00 target price on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Finally, Bank of America restated an “underperform” rating and issued a $77.00 price target (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Omnicom Group has a consensus rating of “Hold” and an average price target of $92.14.

Hedge Funds Weigh In On Omnicom Group

Several large investors have recently modified their holdings of OMC. State Street Corp grew its stake in shares of Omnicom Group by 40.4% in the fourth quarter. State Street Corp now owns 23,676,768 shares of the business services provider’s stock worth $1,933,891,000 after purchasing an additional 6,813,441 shares during the last quarter. Wellington Management Group LLP lifted its holdings in Omnicom Group by 522.9% during the 4th quarter. Wellington Management Group LLP now owns 5,199,477 shares of the business services provider’s stock worth $419,858,000 after buying an additional 4,364,797 shares during the period. AQR Capital Management LLC grew its position in shares of Omnicom Group by 186.4% in the 4th quarter. AQR Capital Management LLC now owns 3,705,816 shares of the business services provider’s stock valued at $299,245,000 after buying an additional 2,412,077 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Omnicom Group by 86.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,820,978 shares of the business services provider’s stock valued at $389,291,000 after buying an additional 2,233,717 shares during the period. Finally, Alyeska Investment Group L.P. bought a new position in shares of Omnicom Group during the fourth quarter worth about $124,393,000. Institutional investors own 91.97% of the company’s stock.

Omnicom Group Company Profile

Omnicom Group Inc (NYSE: OMC) is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company’s primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.