Investing.com – Omnicom Group (NYSE:OMC) slipped 5.5% on Tuesday after revenue missed estimates, and it doesn’t seem like things are going to improve any time soon.
Omnicom reported second quarter sales of $2.8 billion compared to the $2.96 billion expected by analysts tracked by Investing.com. Earnings per share of 92 cents beat the estimate of 81 cents.
Shares of Omnicom have dropped 28% since the start of the year.
The New York-based company said clients reduced or planned to reduce their demand for Omnicom’s services, resulting in lower revenue in the first quarter. That should continue through the rest of 2020, the company said in a statement. “Such reductions in revenue could adversely impact our ongoing results of operations and financial position and the effects could be material,” Omnicom said.
The company pointed to industries including travel, lodging and entertainment, energy and oil and gas, non-essential retail, and automotive as those that have cut, postponed, or reduced marketing communication expenditures.
Healthcare and pharmaceuticals, technology and telecommunications, financial services, and consumer products companies have “fared relatively well to date,” but “conditions are volatile and economic uncertainty cuts across all clients, industries and geographies.”
“Demand for our services can be expected to decline as marketers reduce expenditures in the short term due to the uncertain impact of the pandemic on the global economy,” the company said.