| NEW YORK
NEW YORK Oct 18 Omnicom Group Inc on
Tuesday reported third-quarter earnings that narrowly beat
estimates and said that it lacked clarity on its outlook for
this quarter due to foreign currency pressures following Brexit
and the U.S. presidential election.
The New York City-based marketing and communications company
has "less visibility" heading into the fourth quarter, chief
executive officer John Wren said on a call with analysts on
"This year is further complicated by the upcoming U.S.
presidential election, the increasing likelihood that the Fed
will raise rates before year-end, and the potential effects of
Brexit," Wren said.
Shares in Omnicom, which have risen over 7 percent
year-to-date, fell two percent to $81.34 after it announced
results on Tuesday morning.
For the quarter ended Sept. 30, Omnicom reported a profit of
$254 million or $1.06 per share, up from $239 million, or 97
cents a year ago. Analysts polled by Thomson Reuters I/B/E/S
were expecting earnings of $1.04 per share.
Revenue rose 2.3 percent to $3.8 billion, in line with
analysts' estimates. The negative impact of foreign exchange
rates, especially the falling value of the British pound after
Brexit, skimmed 1.3 percent of its revenue in the quarter, it
Wireless carrier AT&T Inc said in August it had struck
an advertising deal with Omnicom to let the firm handle its
creative and media business.
Omnicom's other recent deals with clients such as Volkswagen
Media and McDonald's, "will not contribute to incremental
revenue until January 2017," chief executive officer Wren said.
(Reporting by Malathi Nayak; Editing by Sandra Maler)