Global marketing and corporate communications firm Omnicom Group Inc. (OMC – Free Report) reported relatively healthy third-quarter 2017 results on modest organic growth. Net income for the reported quarter was $286.9 million or $1.13 per share compared with $278.2 million or $1.06 per share in the year-ago quarter. The year-over-year increase in earnings despite lower revenues was primarily attributable to lower operating expenses. Earnings for the reported quarter beat the Zacks Consensus Estimate by three cents.

Revenues

Revenues declined 1.9% year over year to $3,719.5 million but exceeded the Zacks Consensus Estimate of $3,713 million. Acquisitions, net of dispositions, led to a 5.7% decrease in revenues, partially offset by favorable foreign exchange rate impact of 1% and organic growth of 2.8%.

Omnicom Group Inc. Price, Consensus and EPS Surprise

Quarterly Performance

By business discipline, revenues for Advertising were down 1.4% year over year to $1,946.1 million; CRM (customer relationship management) revenues decreased 4.5% year over year to $1,149.4 million; PR (public relations) revenues of $345.9 million declined 0.5% on a year-over-year basis; and Specialty revenues of $278.1 million increased 4.2% year over year.

Across regional markets, North America revenues reduced 6.5% year over year to $2,107.5 million. Asia Pacific recorded a 1.8% decrease in revenues to $411.2 million, Euro & Other Europe improved 11.7% to 660.1 million, while the U.K. recorded a 2.8% improvement to $357.6 million. Revenues from Latin America saw an increase of 4.6% year over year to $117.7 million, while that of Middle East and Africa declined 2.7% to $65.4 million.

Operating income for the quarter was $464.2 million compared with $453.1 million in the year-ago quarter for respective margins of 12.5% and 12%. Earnings before interest, taxes and amortization or EBITA for the reported quarter were $492.1 million, up from $482.1 million in the year-earlier quarter.

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