Omnicom Group OMC releases its next round of earnings this Tuesday, July 20. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Omnicom Group EPS will likely be near $1.38 while revenue will be around $3.38 billion, according to analysts. In the same quarter last year, Omnicom Group reported EPS of $0.92 on revenue of $2.80 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to match the consensus estimate, earnings would be up 50.0%. Revenue would be up 20.67% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:
|Quarter||Q1 2021||Q4 2020||Q3 2020||Q2 2020|
|Revenue Estimate||3.25 B||3.69 B||3.03 B||3.09 B|
|Revenue Actual||3.43 B||3.76 B||3.21 B||2.80 B|
Shares of Omnicom Group were trading at $77.45 as of July 16. Over the last 52-week period, shares are up 39.89%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Omnicom Group is scheduled to hold the call at 08:30:00 ET and can be accessed here.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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