Omnicom Group, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Omnicom Group, Inc. (NYSE:OMC) will unveil its latest earnings on Tuesday, October 18, 2011. 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 net income of 70 cents per share, a rise of 22.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 68 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 70 cents during the last month. Analysts are projecting profit to rise by 21.9% versus last year to $3.29.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 96 cents per share versus a mean estimate of net income of 92 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 10.7% in revenue from the year-earlier quarter to $3.31 billion.

Analyst Ratings: eight out of 15 analysts surveyed (53.3%) have a buy rating on Omnicom Group.. This is below the mean analyst rating of 10 competitors, which average 62.8% buy ratings.

A Look Back: In the second quarter, profit rose 13.1% to $275.1 million (96 cents a share) from $243.3 million (79 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.7% to $3.49 billion from $3.04 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 23.6% in the first quarter and 7.4% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 7.9% in the first quarter from the year earlier, climbed 9.8% in the fourth quarter of the last fiscal year from the year-ago quarter and 5.5% in the third quarter of the last fiscal year.

Competitors to Watch: Interpublic Group of Companies, Inc. (NYSE:IPG), MDC Partners Inc. (NASDAQ:MDCA), Publicis Groupe S.A. (PUBGY), Lamar Advertising Company (NASDAQ:LAMR), Charm Communications Inc (NASDAQ:CHRM), Focus Media Holding Ltd. (NASDAQ:FMCN), National CineMedia, Inc. (NASDAQ:NCMI), ValueClick, Inc. (NASDAQ:VCLK), interCLICK Inc (NASDAQ:ICLK), and Inuvo, Inc. (AMEX:INUV).

Stock Price Performance: During July 19, 2011 to October 12, 2011, the stock price had fallen $6.86 (-14.3%) from $48.12 to $41.26. The stock price saw one of its best stretches over the last year between March 23, 2011 and April 1, 2011 when shares rose for eight-straight days, rising 3.7% (+$1.75) over that span. It saw one of its worst periods between January 6, 2011 and January 14, 2011 when shares fell for seven-straight days, falling 5.4% (-$2.53) over that span. Shares are down $3.77 (-8.4%) year to date.

(Source: Xignite Financials)

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