Omnicom 3Q profit falls, adjusted results top view
Omnicom 3Q profit falls on merger-related costs; adjusted profit, revenue top Street's view
NEW YORK (AP) -- THE NEWS: Advertising firm Omnicom Group Inc. said Tuesday that its third-quarter net income fell 4 percent, hurt by charges tied to its combination with Publicis Groupe SA. Its adjusted results and revenue topped analysts' estimates.
THE DETAILS: The current quarter included $28.1 million in charges related to the merger. Omnicom and Publicis announced in July that they were combining in a "merger of equals" that would create the world's largest advertising firm.
Revenue climbed, led by a 3.2 percent gain domestically. International revenue increased 1.6 percent. Advertising revenue and public relations revenue were the strongest segments.
THE NUMBERS: Omnicom earned $191.2 million, or 74 cents per share, for the period ended Sept. 30. That's down from $199.4 million, or 74 cents per share, a year ago. Excluding merger-related costs, earnings were 82 cents per share.
Revenue rose 2 percent to $3.49 billion from $3.41 billion. Analysts surveyed by FactSet expected earnings of 80 cents per share on revenue of $3.48 billion.
THE STOCK: Omnicom's stock rose 57 cents to $64.52 in premarket trading Tuesday. It's traded between $45.11 and $70.50 over the past year.
