Omnicom Group Inc. (OMC: 35.20 -0.36 -1.01%) announced results for the fourth quarter and full year 2009. During the quarter, net income decreased 15.3% to $229.6 million from $271.0 million in the fourth quarter of 2008.
Omnicom’s earnings per share (EPS) decreased 16.1% to 73 cents from 87 cents in the year ago quarter. Reported EPS exactly matched with the Zacks Consensus Estimate of 73 cents.
Omnicom’s net income for the twelve months ended December 31, 2009, decreased 20.7% to $793.0 million from $1,000.3 million for the same period in 2008. EPS for the full year decreased 19.4% to $2.53 in 2009 from $3.14 in 2008. However, it was above the Zacks Consensus Estimate of $2.45.
Worldwide revenue for the quarter decreased 3.1% to $3,265.9 million from $3,371.3 million in the fourth quarter of 2008. Domestic revenue decreased 7.3% to $1,630.4 million compared to $1,759.5 million in the same period of 2008. International revenue increased 1.5% to $1,635.5 million from $1,611.8 million in the year ago quarter.
During full year 2009, worldwide revenue decreased 12.3% to $11,720.7 million from $13,359.9 million in 2008. Domestic revenue decreased 10.3% to $6,178.4 million from $6,890.0 million and International revenue decreased 14.3% to $5,542.3 million from $6,469.9 million.
Omnicom Group is one of the largest providers of advertising, marketing and corporate communication services in the world. The company continues to generate new business wins, despite the current challenging economic environment. In addition, Omnicom has acquired complementary companies to expand its clientele.
To combat the current economic challenges, management has aligned the company’s cost structure by right-sizing headcount and reducing compensation pools. Our current recommendation for Omnicom’s shares is Neutral, reflecting that the stock will perform in line with the broader market.
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