Overview

* Omnicom ( OMC ) Q2 revenue rises 4.2% to $4.0 bln, beating expectations, per LSEG data

* Adjusted EPS for Q2 beats estimates at $2.05, per LSEG data

* Operating profit missed expectations, affected by acquisition and repositioning costs

Outlook

* Omnicom ( OMC ) sees significant growth opportunities from Interpublic acquisition.

* Company acknowledges macroeconomic and geopolitical uncertainties impacting business.

* Omnicom ( OMC ) cleared U.S. antitrust review for Interpublic acquisition.

Result Drivers

* ORGANIC GROWTH - Omnicom ( OMC ) achieved 3.0% organic revenue growth, driven by Media & Advertising and Precision Marketing, despite declines in Public Relations and Healthcare

* ACQUISITION COSTS - Operating profit impacted by $66 million in acquisition costs related to Interpublic merger

* REPOSITIONING EXPENSES - $88.8 million in repositioning costs, primarily for severance, affected operating income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $4.02 $3.96

Revenue bln bln (5

Analysts

)

Q2 Beat $2.05 $2 (6

Adjusted Analysts

EPS )

Q2 EPS $1.31

Q2 Net $257.60

Income mln

Q2 Miss $439.20 $574.50

Operatin mln mln (5

g profit Analysts

)

Q2 10.9%

Operatin

g profit

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the advertising & marketing peer group is "buy"

* Wall Street's median 12-month price target for Omnicom Group Inc ( OMC ) is $99.00, about 26.6% above its July 14 closing price of $72.65

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)