By Christiana Sciaudone
Investing.com – Omnicom Group (NYSE:) slipped 5.5% on Tuesday soon after revenue skipped estimates, and it does not appear like points are likely to enhance any time quickly.
Omnicom described 2nd quarter sales of $2.8 billion as opposed to the $2.96 billion predicted by analysts tracked by Investing.com. Earnings for every share of 92 cents conquer the estimate of 81 cents.
Shares of Omnicom have dropped 28% due to the fact the start out of the 12 months.
The New York-primarily based firm explained consumers decreased or planned to decrease their demand for Omnicom’s solutions, ensuing in reduced revenue in the first quarter. That really should keep on by the rest of 2020, the corporation said in a statement. “Such reductions in revenue could adversely impact our ongoing outcomes of operations and financial position and the effects could be material,” Omnicom claimed.
The corporation pointed to industries which include travel, lodging and entertainment, vitality and oil and gasoline, non-essential retail, and automotive as those that have minimize, postponed, or minimized marketing interaction expenses.
Health care and prescription drugs, engineering and telecommunications, economic solutions, and buyer goods businesses have “fared comparatively properly to date,” but “conditions are volatile and economic uncertainty cuts across all shoppers, industries and geographies.”
“Demand for our services can be anticipated to decline as marketers decrease expenditures in the short term owing to the uncertain effects of the pandemic on the world overall economy,” the enterprise stated.