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Omnicom (OMC) Beats Q3 Earnings Estimate on Organic Growth

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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 1.5%, beating estimates on all occasions.

Currently, OMC has a Zacks Rank #2 (Buy), but that could definitely change following third-quarter 2017 earnings report, which was just released. We have highlighted some of the key stats from this just-released announcement below:

Earnings: OMC beats on earnings. The Zacks Consensus Estimate called for EPS of $1.10, and the company reported EPS of $1.13.

Omnicom Group Inc. Price and EPS Surprise

 

Omnicom Group Inc. Price and EPS Surprise | Omnicom Group Inc. Quote

Revenues: Revenues exceeded estimates. OMC posted total revenue of $3,719.5 million, compared with Zacks Consensus Estimate of $3,713 million.

Key Stats to Note: OMC reported healthy organic growth of 2.8%. For the twelve months ended Sep 30, 2017, return on invested capital (ROIC) and return on equity (ROE) aggregated 20.2% and 48.9%, respectively.

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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