Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Omnicom Group (NYSE:OMC) and its peers.
The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.
The 7 advertising & marketing services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.8% below.
Luckily, advertising & marketing services stocks have performed well with share prices up 12.9% on average since the latest earnings results.
Weakest Q1: Omnicom Group (NYSE:OMC)
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE:OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Omnicom Group reported revenues of $3.69 billion, up 1.6% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates but organic revenue in line with analysts’ estimates.
"Organic revenue growth for the first quarter was 3.4%. We are assessing the implications of economic and market events to determine how they will affect our clients and business for the remainder of 2025. While uncertainty has increased, one thing hasn't changed and will always be true – Omnicom is a trusted partner for our clients, offering strategic advice to grow their sales while delivering flexibility, value and performance," said John Wren, Chairman and Chief Executive Officer of Omnicom.
Unsurprisingly, the stock is down 2.8% since reporting and currently trades at $74.71.
Read our full report on Omnicom Group here, it’s free.
Best Q1: Liberty Broadband (NASDAQ:LBRDK)
Operating across the United States, Liberty Broadband (NASDAQ:LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Liberty Broadband reported revenues of $266 million, up 8.6% year on year, outperforming analysts’ expectations by 7%. The business had an incredible quarter.
Liberty Broadband scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.5% since reporting. It currently trades at $100.56.
Is now the time to buy Liberty Broadband? Access our full analysis of the earnings results here, it’s free.
QuinStreet (NASDAQ:QNST)
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
QuinStreet reported revenues of $269.8 million, up 60.1% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a decent beat of analysts’ EPS estimates.
As expected, the stock is down 9.6% since the results and currently trades at $16.54.
Read our full analysis of QuinStreet’s results here.
Magnite (NASDAQ:MGNI)
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Magnite reported revenues of $155.8 million, up 4.3% year on year. This print lagged analysts' expectations by 2.6%. Zooming out, it was actually a satisfactory quarter as it put up a solid beat of analysts’ EPS estimates.
Magnite had the weakest performance against analyst estimates among its peers. The stock is up 96.5% since reporting and currently trades at $24.49.
Read our full, actionable report on Magnite here, it’s free.
Interpublic Group (NYSE:IPG)
With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE:IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services.
Interpublic Group reported revenues of $2.00 billion, down 8.5% year on year. This result met analysts’ expectations. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ organic revenue estimates.
Interpublic Group had the slowest revenue growth among its peers. The stock is up 6% since reporting and currently trades at $25.38.
Read our full, actionable report on Interpublic Group here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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