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Hot Move to Watch: Omnicom Group Inc. (NYSE: OMC)

On Tuesday, Omnicom Group Inc. (NYSE: OMC) shares price traded between $67.72 and $68.44 during the last trading session above with +0.81% at $68.26. The shares recorded a trading volume 1,119,511 shares as compared to its average volume of 2,064,023 shares. The company has 224.37M shares outstanding and market value of 15.316B. Over the one year trading period, the stock has a peak price of $83.34 and its down is recorded at $65.32. The short ratio in the stock is 13.91 and the short float is around of 11.03%.

Omnicom Group Inc. (OMC) recently reported that its net income for the second quarter of 2018 raised $35.6M, or 10.8%, to $364.2M from $328.6M in the second quarter of 2017.  Diluted net income per ordinary share for the second quarter of 2018 raised twenty cents, or 14.3%, to $1.60 per share versus $1.40 per share for the second quarter of 2017.

Omnicom’s worldwide revenue in the second quarter of 2018 raised 1.8% to $3,859.6M from $3,790.1M in the second quarter of 2017. The components of the change in revenue included an raise in revenue from the positive foreign exchange rate impact of 2.1%, a decrease in acquisition revenue, net of disposition revenue of 1.0% and an raise in revenue from organic growth of 2.0% when contrast to the second quarter of 2017.  In addition, effective January 1, 2018, we adopted FASB Accounting Standards Codification Topic 606 “Revenue from Contracts with Consumers” (“ASC 606”). We elected to adopt ASC 606 applying the modified retrospective method.  The effect on revenue in the second quarter of 2018 from adopting ASC 606 when contrast to the second quarter of 2017 was a decrease in revenue of 1.3%.

Organic growth in the second quarter of 2018 as contrast to the second quarter of 2017 in our fundamental disciplines was as follows: Advertising raised 1.6%, CRM Consumer Experience raised 7.1%, CRM Execution & Support reduced 4.4%,  Public Relations raised 2.7% and Healthcare raised 4.8%.

Across our regional markets, organic growth in the second quarter of 2018 as contrast to the second quarter of 2017 was 11.2% in the Euro Markets and Other Europe, 8.5% in Asia Pacific and 2.5% in Latin America, while North America reduced  0.9%, the United Kingdom reduced 2.2% and the Middle East and Africa reduced 8.0%.

Operating profit in the second quarter of 2018 raised $10.8M, or 1.9%, to $582.3M from $571.5M in the second quarter of 2017. Our operating margin for the second quarter of 2018 of 15.1% was unchanged when contrast to the second quarter of 2017.  The impact from adopting ASC 606 reduced operating profit by $7.5M during the second quarter of 2018.

For the second quarter of 2018, our income tax rate was 25.8% contrast to 32.0% for the same period in 2017. The year over year difference in our effective tax rate primarily resulted from the enactment of the Tax Cuts and Jobs Act (the “2017 Tax Act”), which reduced the U.S. Federal statutory tax rate from 35% to 21%. In addition, the decrease in the effective tax rate reflects a reduction in the predictable incremental U.S. tax applied against Omnicom’s overall foreign earnings of $12M.

Full Year

Net income – Omnicom Group Inc. for the six months ended June 30, 2018 raised $57.9M, or 10.2%, to $628.3M from $570.4M in the same period in 2017. Diluted net income per ordinary share for the six months ended June 30, 2018 raised thirty-one cents, or 12.8%, to $2.73 per share contrast to $2.42 per share for the six months ended June 30, 2017.

Worldwide revenue for the six months ended June 30, 2018 raised 1.5% to $7,489.2M from $7,377.6M in the same period of 2017.  The components of the change in revenue included an raise in revenue from the positive  foreign exchange rate impact of 3.1%, a decrease in acquisition revenue, net of disposition revenue of 2.6% and an raise in revenue from organic growth of 2.2% when contrast to the same period of 2017.  The effect on revenue for the six months ended June 30, 2018 from adopting ASC 606 when contrast to the same period of 2017 was a decrease in revenue of 1.2%.

During the past three month period the stock dropped -7.59% and decreased -7.48% in past six month. During the twelve month it lost -13.66% and year to date performance of -6.27%. The company plunged -0.83% in past week and declined -11.55% in one month.

James Moon

Written by James Moon

James Moon:- Business and Services
I am James Moon and I give “News Stories World” an insight into the most recent news hitting the “Business and Services” sector in Wall Street. I have been an independent financial adviser for over 13 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.

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