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NEW YORK - Advertising giant Omnicom Group Inc. (NYSE:OMC) reported worse-than-expected fourth-quarter results on Tuesday, as both earnings and revenue fell short of analyst estimates. OMC shares were trading flat following the report.
The company posted adjusted earnings per share of $2.41 for the quarter, just shy of the $2.42 consensus forecast. Revenue came in at $4.3 billion, below the $4.36 billion analysts were expecting.
Omnicom’s organic revenue growth, which excludes acquisitions and currency effects, was 5.2% YoY in Q4. The company saw strong organic growth of 7.1% in its Media & Advertising segment and 9.1% in Precision Marketing.
"With 5.2% organic revenue growth for both the fourth quarter and full year, and even higher growth in adjusted EBITA and adjusted EPS, our strong operational execution gives us confidence for continued strength in 2025," said John Wren, Chairman and CEO of Omnicom.
For the full year 2024, Omnicom reported revenue of $15.7 billion, up 6.8% from 2023. Adjusted earnings per share for the year rose 5.5% to $8.06.
The company’s operating margin was unchanged at 15.9% in Q4. Omnicom ended the year with a 14.5% operating margin, up slightly from 14.3% in 2023.
Looking ahead, Wren expressed optimism about Omnicom’s proposed acquisition of rival Interpublic Group, saying the combined company would offer "expanded products to deliver superior creativity, innovation and effectiveness."
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