NEW YORK, Oct 18 (Reuters) - 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 Tuesday.
“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 said.
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)