New York-based Omnicom Group Inc. (OMC - Analyst 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.
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!
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