Omnicom Group Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Omnicom Group, Inc. (NYSE:OMC) will unveil its latest earnings on Tuesday, February 14, 2012. Omnicom Group provides professional, advertising, marketing, and corporate communications services.

Omnicom Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 95 cents per share, a rise of 14.5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 22.2% versus last year to $3.30.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 72 cents per share against a mean estimate of profit of 70 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.81 billion in revenue this quarter, a rise of 6.1% from the year ago quarter. Analysts are forecasting total revenue of $13.82 billion for the year, a rise of 10.2% from last year’s revenue of $12.54 billion.

Analyst Ratings: Analysts seem relatively indifferent about Omnicom Group with nine of 15 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 16.7% to $203.7 million (72 cents a share) from $174.6 million (57 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.9% to $3.38 billion from $2.99 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 13.1% in the second quarter and 23.6% in the first quarter.

Revenue has risen the past four quarters. Revenue rose 14.7% in the second quarter from the year earlier, climbed 7.9% in the first quarter from the year-ago quarter and 9.8% in the fourth quarter of the last fiscal year.

Stock Price Performance: During November 10, 2011 to February 8, 2012, the stock price had risen $4.16 (9.6%) from $43.30 to $47.46. The stock price saw one of its best stretches over the last year between November 23, 2011 and December 5, 2011 when shares rose for eight-straight days, rising 12.2% (+$4.82) over that span. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven-straight days, falling 8.8% (-$3.81) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com