Nomura Securities Q2 First Look on Omnicom Group (OMC): Counting on a Strong Second Half Margin Story
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Price: $87.57 -0.89%
Rating Summary:
8 Buy, 19 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 19 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Omnicom Group (NYSE: OMC) price target of $52.00.
Analyst, Michael Nathanson, said, "Omnicom reported revenue growth of 5.1% (vs. 4.3% est.) and adjusted EBITA growth of 4% (vs. 5% est.) with adjusted EPS of $1.02 – a penny below our estimate. The EPS miss was driven by higher expense growth, which more than offset the better revenue."
However, Nathanson said OMC's organic revenue in the U.S. and Internationally was ahead of estimates. He also notes that margin progression sets up for increasingly second half weighted story.
In conclusion, Nathanson, said, "We maintain our Neutral rating on OMC, as we are not terribly excited about the company’s investment case relative to our Buy-rated pure-play media names. We project double-digit EPS growth will continue in 2012 and 2013, but that accomplishment will be helped by share count shrinkage."
For an analyst ratings summary and ratings history on Omnicom Group click here. For more ratings news on Omnicom Group click here.
Shares of Omnicom Group closed at $49.14 yesterday.
Analyst, Michael Nathanson, said, "Omnicom reported revenue growth of 5.1% (vs. 4.3% est.) and adjusted EBITA growth of 4% (vs. 5% est.) with adjusted EPS of $1.02 – a penny below our estimate. The EPS miss was driven by higher expense growth, which more than offset the better revenue."
However, Nathanson said OMC's organic revenue in the U.S. and Internationally was ahead of estimates. He also notes that margin progression sets up for increasingly second half weighted story.
In conclusion, Nathanson, said, "We maintain our Neutral rating on OMC, as we are not terribly excited about the company’s investment case relative to our Buy-rated pure-play media names. We project double-digit EPS growth will continue in 2012 and 2013, but that accomplishment will be helped by share count shrinkage."
For an analyst ratings summary and ratings history on Omnicom Group click here. For more ratings news on Omnicom Group click here.
Shares of Omnicom Group closed at $49.14 yesterday.
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