Omnicom Group Inc. OMC reported impressive first-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

Earnings of $1.7 per share beat the consensus estimate by 4.3% and increased 1.8% year over year. Total revenues of $3.7 billion surpassed the consensus estimate by a slight margin and increased 1.6% year over year. The increase in the top line was led by an increase of 3.4% in revenues from organic growth.

Omnicom shares have declined 14% over the past year compared to a 19% decline in the industry it belongs to and the 9.5% rise of the Zacks S&P 500 composite.

Organic Growth Across Disciplines and Regions

Across fundamental disciplines, revenues from Advertising & Media increased 7.2% organically compared with our estimated growth of 7.8%. Precision marketing revenues jumped 5.8% compared with our estimate of 3.9% growth. Experiential revenues declined 1.5% compared with our expectation of 16.8% growth.

Public Relations revenues decreased 4.5% compared with our estimation of 3.6% growth. Healthcare revenues decreased 3.2% year over year organically compared with our estimated decline of 0.3%. Branding & Retail Commerce revenues were down 10% compared with our estimated decline of 6.2%. Execution and support increased 1.9% versus our estimated decline of 0.3%.

Across regional markets, year-over-year organic revenue growth was 4.6% in the United States, 1.7% in Euro Markets & Other Europe, 14.8% in Latin America, 6% in Asia Pacific. Middle East & Africa revenues declined 9.3%. Other North America and U.K. revenues declined 3.6% and 0.7%, respectively.

Margin Performance

Adjusted EBITA in the quarter came in at $508.2 million, up 1.6% year over year. Adjusted EBITA margin was 13.8%, flat year over year. Operating profit of $452.6 million decreased 5.5% year over year. The operating margin decreased 90 bps to 12.3%.

Zacks Rank and Stocks to Consider

Omnicom currently carries a Zacks Rank #4 (Sell).

A couple of better-ranked stocks are Limbach Holdings, Inc. LMB and PagSeguro Digital PAGS.

Limbach Holdings sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LMB has a long-term earnings growth expectation of 12%. It delivered a trailing four-quarter earnings surprise of 42.3%, on average.

PagSeguro Digital flaunts a Zacks Rank of 1 at present.

PAGS has a long-term earnings growth expectation of 11%. It delivered a trailing four-quarter earnings surprise of 9.3% on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report

PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research