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Research Alert: Omc: Q3 Eps Miss Driven By Acquisition Costs, Core Business Shows Growth
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Research Alert: Omc: Q3 Eps Miss Driven By Acquisition Costs, Core Business Shows Growth
Oct 21, 2025 3:46 PM

06:15 PM EDT, 10/21/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Q3 GAAP EPS of $1.75 (-10%) missed $2.17 consensus, though revenue of $4,037.1M (+4%) beat $4,019M consensus, driven by 2.6% organic growth. Non-GAAP adjusted EPS rose 10.3% to $2.24, demonstrating core business strength despite $60.8M in IPG acquisition costs and $38.6M in repositioning expenses. We view the 9.1% organic growth in Advertising & Media (OMC's largest segment at 57% of revenue) as encouraging given acquisition-related disruption. OMC reiterated its 2025 outlook of 2.5%-4.5% organic growth and 15.5% adjusted EBITA margins. The IPG acquisition is expected to close in late November, with EU antitrust approval as the final step after filing on October 20. We think the deal bolsters OMC's Advertising & Media, Precision Marketing, and Healthcare segments. We see the growth targets as achievable, as OMC has delivered roughly 3% organic growth YTD, while YTD adjusted EBITA margins of 15.1% suggest management expects improvements ahead.

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