Shares of Omnicom Group (NYSE:OMC) dipped in extended trading Tuesday despite beating Street expectations for third-quarter earnings and revenue.
The brand and advertising services company posted earnings of $1.86 per share in the period ended September 30, up from $1.77 a year earlier and expectations of $1.84.
Revenue was $3.58 billion, up 4% year-over-year and ahead of expectations of $3.55 billion.
The rising revenue and income came as demand for the company’s marketing services rose ahead of the holiday season.
“We are pleased with our strong organic revenue growth of 3.3%, with notable performances in our Advertising & Media, Precision Marketing, and Healthcare disciplines,” CEO John Wren said in a statement.
“Our year-to-date organic growth of 4% remains in line with our full-year expectations, which reflects the resiliency of our business even in periods of economic uncertainty.”
That economic uncertainty, which Omnicom acknowledged in the statement accompanying its results, seems to be part of the reason why the company’s stock fell 1.4% after hours to $75.47.
“Current global economic challenges, including the war in Ukraine, high and sustained inflation, rising interest rates, supply chain disruptions, credit market deterioration, and other macroeconomic factors, could cause economic uncertainty and volatility, the company said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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