Omnicom beats results estimates on ad market strength
Oct 17 (Reuters) - Omnicom beat Wall Street targets for third-quarter results on Tuesday as demand for its marketing services jumped ahead of the all-important holiday shopping season.
Businesses have been dialing up their spending on ad campaigns as the economic outlook improves with steady hiring and cooling inflation.
Omnicom's revenue grew nearly 4% to $3.58 billion in the quarter ended Sept. 30, compared with a consensus estimate of $3.55 billion from six analysts polled by LSEG.
Its net income grew 2% to $371.9 million. Excluding items, the company earned $1.86 per share, compared with expectations of $1.84.
Omnicom, which competes with The Interpublic Group of Companies and UK's WPP, is one of the world's biggest integrated advertising and communications firms with more than 5,000 customers.
Nearly half of its revenue comes from the U.S., with Europe as its second-largest market.
The positive results come after tepid growth at the firm over recent years, amid a tight spending environment caused by high inflation and raised interest rates.
After falling 12% in 2020 during the pandemic, Omnicom's revenue grew 8.5% in 2021 and was flat last year.
Shares of the company fell 1% in trading after the bell on Tuesday, after dropping more than 6% so far this year. (Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)
