Omnicom, which was formed in 1986 through the merger of three leading U.S. advertising agencies - BBDO, Doyle Dane Bernbach and Needham Harper Worldwide.
Omnicom is a diversified advertising and marketing comglomerate with revenues more than $11 billion a year.
Over the past year the share price of OMC has risen over 25%. Currently it is floating around its 52-week high.
For the quarter, net income was up by 9.7 percent on a 9.4 percent gain in sales.
Earnings per share were up a more impressive 14.9 percent.
---My 2 cents---
Taking economics right now and reading "The World is Flat", its pretty obvious that opportunity for lower developed countries to compete in the global economy is increasing rapidly. And in business, nothing happens till someone buys something, which requires someone to sell something, and for someone to sell something, there has to be advertising (due to competition). As more and more competitors enter the global economy, more companies will be willing to spend more and more on advertising to outpace their competitiors. And thats where we make our money =] And a lovely bonus is that advertising companies usually get boosts 12+ months before the presidential election. =]
The stock trades at 18.6 times this year's estimated earnings and 16.5 times next year's projections.
Industry forecasters project that overall, advertising will grow by 4 percent to 5 percent this year and continue at an above-average rate.
$51.65 (04/06/07)
