Omnicom shares inch higher on revenue beat, strong organic growth

NEW YORK - Omnicom Group Inc. (NYSE:OMC ) reported better-than-expected third quarter revenue and strong organic growth, sending shares up 1% in after-hours trading on Tuesday.

The advertising and marketing services company posted revenue of $3.88 billion, surpassing analyst estimates of $3.8 billion. Organic revenue growth, which excludes acquisitions and currency effects, came in at a robust 6.5% year-over-year.

Adjusted earnings per share were $2.03, slightly below the $2.04 consensus estimate.

"Omnicom delivered a strong quarter, with 6.5% organic revenue growth, and 7.9% EBITA growth," said John Wren, Chairman and CEO of Omnicom. "We did so while continuing to strengthen our organization by investing in talent, service capabilities, and technology platforms to enhance our client offerings."

The company saw broad-based organic growth across most disciplines and regions. Advertising & Media led with 9.4% organic growth, while Experiential surged 35.3%. Geographically, Asia Pacific posted 10.9% organic growth and the U.S. grew 6.5%.

Operating income rose 7% to $600.1 million, though operating margin contracted slightly to 15.5% from 15.7% a year ago.

Looking ahead, Wren said, "With exceptional new business wins and exciting new work for our clients, we expect to finish the year with strong momentum."

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Source: Investing.com