The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how advertising & marketing services stocks fared in Q4, starting with Omnicom Group (NYSE: OMC).
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 6 advertising & marketing services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.3% since the latest earnings results.
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 $4.32 billion, up 6.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ organic revenue estimates.
The stock is down 7% since reporting and currently trades at $80.83.
Is now the time to buy Omnicom Group? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $263 million, up 5.2% year on year, outperforming analysts’ expectations by 0.9%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $80.45.
Is now the time to buy Liberty Broadband? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $194 million, up 3.8% year on year, falling short of analysts’ expectations by 6.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Magnite delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 25.3% since the results and currently trades at $12.59.
Read our full analysis of Magnite’s results here.
Taboola (NASDAQ: TBLA)
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Taboola reported revenues of $212.7 million, up 26.2% year on year. This print lagged analysts' expectations by 0.7%. Zooming out, it was actually a strong quarter as it logged an impressive beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Taboola had the weakest full-year guidance update among its peers. The stock is down 20.5% since reporting and currently trades at $2.95.
Read our full, actionable report on Taboola 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 $2.43 billion, down 5.9% year on year. This result came in 3.1% below analysts' expectations. It was a disappointing quarter as it also logged a significant miss of analysts’ EPS estimates and a miss of analysts’ organic revenue estimates.
Interpublic Group had the slowest revenue growth among its peers. The stock is down 2.6% since reporting and currently trades at $26.09.
Read our full, actionable report on Interpublic Group here, it’s free.
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