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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (37935)	8/6/2002 10:56:49 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68903

Tuesday August 6, 7:09 am Eastern Time Reuters Business Report Omnicom Earns Rise on Stronger Ad Market NEW YORK (Reuters) - Omnicom Group Inc (NYSE:OMC - News) said on Tuesday its second-quarter profit rose 9 percent on higher-than-expected revenue, boosted by improvements in the beleaguered U.S. advertising sector. [Harry: If we can get confirmation from a few more advertising firms then it may indicate there is more strength in the economy than preceived. Lineage rates in the past have been a pretty good indicator of the true strength of the economy.] Omnicom, the world's No. 3 ad group whose major clients include PepsiCo Inc. (NYSE:PEP - News) and DaimlerChrysler (XETRA:DCXGn.DE - News; NYSE:DCX - News), posted earnings of $187.3 million, or $1.00 per share, compared with $171.5 million, or 94 cents per share a year earlier, with the previous year quarter's results adjusted to account for an accounting change. Without the adjustment, the year-ago profit was $151.4 million, or 81 cents per share. Revenue rose to $1.92 billion from $1.75 billion a year earlier. Domestic revenue was up 21 percent, to $1.1 billion, and international revenue fell 3 percent, to $797.2 million. Analysts on average expected earnings of $1.00 per share on revenue of $1.88 billion, according to research firm Multex, with earnings estimates ranging from $1.00 to $1.02 per share. Omnicom said on June 7 it was comfortable with estimates of $1.00 per share. The company's shares closed at $47.21 on Monday, down 7 percent after No. 2 advertising firm Interpublic Group of Cos. Inc. (NYSE:IPG - News) delayed its second-quarter earnings date to give its audit committee more time to inspect financial results. The news also hurt European advertisers on Tuesday, sending shares of No. 1 WPP (London:WPP.L - News) and French ad firms Havas (Paris:EURC.PA - News) and Publicis (Paris:PUBP.PA - News) tumbling more than 4 percent. Omnicom stock has lost nearly 40 percent of its value since June, when a Wall Street Journal article raised questions about the company's accounting practices. The shares have underperformed the S&P 500 Index (CBOE:^SPX - News) by more than 20 percent over the past year.