Back to top

Image: Bigstock

Omnicom (OMC) Beats Q3 Earnings on Healthy Organic Growth

Read MoreHide Full Article

New York-based Omnicom Group Inc. (OMC - Free Report) is one of the largest advertising, marketing and corporate communications companies in the world. OMC is expanding its global footprint and is moving into new service areas by leveraging its digital and analytical capabilities and partnering with innovative technology firms in key markets.

However, OMC forms an integral part of the communications industry, which is highly competitive in nature and is susceptible to market risks of losing contracts related to media purchases and production costs. With rising operating costs and adverse currency translation effects gradually shrinking margins, investors have been eagerly waiting for the company’s latest earnings report. In the last four trailing quarters, OMC has reported a positive average earnings surprise of 1.76%, beating estimates thrice.

Currently, OMC has a Zacks Rank #2 (Buy), but that could definitely change following the third-quarter 2016 earnings report, which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: OMC beats on earnings. The Zacks Consensus Estimate called for EPS of $1.03, and the company reported EPS of $1.06.

OMNICOM GRP Price and EPS Surprise

 

OMNICOM GRP Price and EPS Surprise | OMNICOM GRP Quote

Revenue: Revenues beat estimates. OMC posted total revenue of $3,791.1million, compared with Zacks Consensus Estimate of $3,784 million.

Key Stats to Note: OMC reported healthy organic growth and nominal increase in revenue from acquisitions.

Stock Price: Shares did not show any change in the pre-market trading following the release at the time of this write-up.

Check back our full write up on this OMC earnings report later!

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Omnicom Group Inc. (OMC) - free report >>

Published in