Free Research Report as Omnicom’s Adjusted Earnings Rose 5%

LONDON, UK / ACCESSWIRE / March 27, 2018 / Active-Investors.com has just released a free earnings report on Omnicom Group Inc. (NYSE: OMC) ("Omnicom"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=OMC. Omnicom reported its fourth quarter and fiscal 2017 operating and financial results on February 15, 2018. The advertising Company surpassed earnings expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Omnicom Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=OMC

Earnings Highlights and Summary

Omnicom's worldwide revenue decreased 1.5% to $4.18 billion in Q4 2017 from $4.24 billion in Q4 2016. The components of the change in revenue included an increase in revenue from the positive foreign exchange rate impact of 2.4%, a decrease in acquisition revenue, net of disposition revenue of 5.5%, and an increase in revenue from organic growth of 1.6% on a y-o-y basis. Omnicom's reported number fell short of analysts' estimates of $4.21 billion.

Omnicom's organic revenue growth in Q4 2017 was 8.2% in the Euro Markets and Other Europe, 6.0% in Asia/Pacific and 1.9% in Middle-East and Africa; while North America decreased 0.8%, the United Kingdom decreased 0.7%, and Latin America decreased 0.3%.

Omnicom's worldwide revenue for the twelve months ended December 31, 2017, fell 0.9% to $15.27 billion from $15.42 billion in FY16. The components of the change in revenue included an increase in revenue from the positive foreign exchange rate impact of 0.3%, a decrease in acquisition revenue of 4.2% and an increase in revenue from organic growth of 3.0% when compared to the same period of 2016.

During Q4 2017, Omnicom's operating profit rose 3% to $620.1 million from $601.9 million in Q4 2016. The Company's operating margin for the reported quarter increased to 14.8% versus 14.2% for the prior year's same quarter.

Omnicom announced net income of $254.4 million, or $1.09 per share, for Q4 2017 versus net income of $350.3 million, or $1.47 per share, in Q4 2016. In the reported quarter, the Company recorded the net effect of the enactment of the "Tax Cuts and Jobs Act" (Tax Act), which resulted in a net increase of $106.3 million in income tax expense.

Excluding the additional net income tax expense recorded in Q4 2017, in connection with the enactment of the Tax Act, Omnicom's net income totaled $360.7 million, or $1.55 per share, compared to $350.3 million, or $1.47 per share, in Q4 2016. The Company's earnings beat Wall Street's estimates of $1.54 per share.

For FY17, Omnicom reported net income of $1.09 billion, or $4.65 per diluted share, compared to earnings of $1.15 billion, or $4.78 per share, in FY16. Excluding the additional net income tax expense of $106.3 million recorded in Q4 2017 in connection with the enactment of the Tax Act, the Company's net income for FY17 totaled $1.19 billion, or $5.10 per share, compared to $1.15 billion, or $4.78 per share, in FY16.

Cash Matters

During FY17, Omnicom generated approximately $1.7 billion of free cash flow during the year, including the positive effect from changes in working capital and returned almost $1.1 billion in cash to shareholders through dividends and share repurchases. As of December 31, 2017, the Company's net debt position at the end of the year was $1.13 billion, down nearly $800 million compared to December 31, 2016. The decrease was principally due to the positive change in operating capital of approximately $350 million.

Stock Performance Snapshot

March 26, 2018 - At Monday's closing bell, Omnicom's stock rose 2.24%, ending the trading session at $71.76.

Volume traded for the day: 1.87 million shares.

After yesterday's close, Omnicom's market cap was at $16.67 billion.

Price to Earnings (P/E) ratio was at 14.06.

The stock has a dividend yield of 3.34%.

The stock is part of the Services sector, categorized under the Advertising Agencies industry. This sector was up 2.7% at the end of the session.

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