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Tickers in this Article: OMC
Omnicom Group (NYSE:OMC) announced its results for the most recent quarter on October 16, 2012. Omnicom Group provides professional, advertising, marketing, and corporate communications services.

Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Everything Investors Need To Know About Earnings

The Numbers: Omnicom Group fell short of estimates with 74 cents per share and revenues of $3.41 billion. Analysts were expecting 77 cents per share and revenues of $3.53 billion. EPS rose 2.8% while revenue climbed 0.7% from the same period last year. Omnicom Group's revenue has grown during each of the past four quarters on a year-over-year basis. The company's income has remained about on par with last year's levels. Last quarter marked the third in a row of rising net income.

A Look Back: Net income has increased 6.2% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 16.7% from the year-earlier quarter.

Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $1.14 a share to $1.12 over the last 60 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. Over the past 60 days, the average estimate for the fiscal year has reached $3.63 per share, a decline from $3.70.

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