What happened
Shares of Omnicom (NYSE: OMC) fell by 10.4% on Wednesday, according to data provided by S&P Global Market Intelligence, after the marketing and corporate communications company announced mixed quarterly results and warned of macroeconomic headwinds for the rest of 2023.
So what
More specifically, Omnicom's revenue climbed 1.2% year over year in the second quarter to $3.61 billion, as a 1.5% decline in acquisition revenue was more than offset by 3.4% organic revenue growth. However, that fell slightly short of analysts' consensus estimates for revenue of $3.62 billion.
On the bottom line, Omnicom's adjusted net income climbed by 7.7% to $365 million, or $1.81 per share, beating estimates for adjusted earnings of $1.77 per share.
"While the balance of the year will continue to see economic uncertainty, we're entering a dynamic and exciting new era for our company," said Chairman and CEO John Wren. "Omnicom has secured leading positions in generative AI technologies and partnerships to deliver on our promise to achieve the best outcomes for our clients and increase the operational efficiency of our company."
Now what
Omnicom didn't provide forward guidance numbers, so it's likely the market bid down its shares based on its less-than-perfect report and concerns over macroeconomic headwinds. However, Omnicom shares had rallied by nearly 20% year to date and briefly touched a fresh 52-week high on Tuesday ahead of this report, so Wednesday's pullback might also have been powered by traders taking some profits off the table from this otherwise-solid business.
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