Yahoo Finance What Should We Expect From Omnicom Group Inc.’s (NYSE:OMC) Earnings Over The Next Year?
Based on Omnicom Group Inc.’s (NYSE:OMC) earnings update in September 2018, analysts seem cautiously optimistic, with earnings expected to grow by 8.2% in the upcoming year against the past 5-year average growth rate of 3.4%. By 2020, we can expect Omnicom Group’s bottom line to reach US$1.2b, a jump from the current trailing-twelve-month of US$1.1b. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Omnicom Group
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Exciting times ahead?
Over the next three years, it seems the consensus view of the 11 analysts covering OMC is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of OMC’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, OMC’s earnings should reach US$1.4b, from current levels of US$1.1b, resulting in an annual growth rate of 6.0%. EPS reaches $6.65 in the final year of forecast compared to the current $4.68 EPS today. In 2022, OMC’s profit margin will have expanded from 7.1% to 8.5%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Omnicom Group, I’ve compiled three pertinent aspects you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Omnicom Group worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Omnicom Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Omnicom Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
