Omnicom Reports Strong Q3 Results, but Macroenvironment Uncertainties Remain; Shares Attractive

Omnicom easily beat third-quarter FactSet consensus estimates on the top and bottom lines, driven by organic growth in all its offerings, led by its clients’ strong demand for digital transformation and data analytics services. Like its peers such as Publicis, WWP, and IPG, Omnicom’s improved mix of offerings continues to provide some protection from the macro uncertainties while benefiting from changes and growth opportunities within the ad space. Given the strong third-quarter results, Omnicom increased its revenue growth guidance. We made minor adjustments to our projections, which did not affect our $90 fair value estimate. We continue to view this narrow-moat stock with a 4% dividend yield as attractive.