Shares of marketing and corporate communications company Omnicom Group, Inc. (OMC) have gained 14.3% so far this year. OMC’s recent fourth-quarter performance came in ahead of the Street’s estimates on both top-line and bottom-line fronts.
On the back of growth across all geographies and services, revenue increased 2.6% year-over-year to $3.86 billion, beating estimates by $184.3 million. Earnings per share at $2.11 came in ahead of expectations by $0.40.
Further, on February 15, the company declared a dividend of $0.70 per share. The dividend is payable on April 8 to investors on record as of March 10.
With these developments in mind, let us take a look at the changes in OMC’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Omnicom’s top risk category is Macro & Political, contributing 5 of the total 13 risks identified for the stock, compared to a sector average of 4 risk factors under the same category.
In its recent report, the company has changed one key risk factor under the Macro & Political risk category.
OMC highlighted that in 2020 and through Q1 2021 it witnessed a negative impact on its business and financials amid the COVID-19 pandemic. Further, during COVID-19, global economic conditions may remain volatile and demand for OMC’s certain services may be adversely impacted.
Additionally, similar public health crisis could also negatively impact the company’s business, financials, and results of operations in the future.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in Omnicom by 78.2 thousand shares in the last quarter, indicating a positive hedge fund confidence signal in the stock based on activities of 9 hedge funds. Notably, Ray Dalio’s Bridgewater Associates has a holding in OMC worth about $2.9 million.
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