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Highlights
- Omnicom outperforms the expectations during Q4 2021.
- OMC’s revenue increased by 2.6% to US$3,855.9 million in the given period.
- As a result, OMC’s diluted EPS grew by 6% in Q4 2021.
Omnicom Group (NYSE:OMC) shares gained 14.19% on Wednesday (9 February), followed by the company releasing its Q4 2021 earnings report. The OMC shares closed trading at US$90.12 per share, with approximately 2.6 million shares being either bought or sold.
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What impacted Omnicom share price?
The advertising firm generated a revenue representing 2.6% growth from the previous corresponding period to US$ 3,855.9 million during Q4 2021 period. As a result, OMC’s diluted earnings per share (EPS) increased by 6% to US$1.95 per share.
Robust EPS growth, likely, is the primary cause for OMC share price gain. The EPS growth also justified the heavy trading volume of the OMC shares on NASDAQ on Wednesday.
The company board believed that OMC exceeded its performance expectation in the last quarter. Therefore, the board feels optimistic about its FY22 earning guidance and is motivated to perform even better.
OMC’s operating profit increased by 1.3% from its previous corresponding period to US$622.5 million. However, the operating margin decreased slightly to 16.1% compared to 16.4% in Q4 2020.
The net income of OMC increased by 4.5% compared to Q4 2021 to US$416.2 million. On the other hand, the group’s EBIT increased by 1.1% during Q4 2021 to US$6442.7 million, and EBIT margin decreased from 16.9% in Q4 2020 to 16.7%.
