Omnicom Group ( OMC - Get Report) was surging after releasing first-quarter earnings that pleased investors, despite lowered global revenues.
The New York-based marketing and advertising company saw shares trade up around 5% on Tuesday to around $80.90 on the New York Stock exchange, as it revealed its adjusted net income per common share rose 3 cents to $1.17 for the quarter.
That beat analysts' expectations and is higher than the $1.14 per share for the same time last year. It topped Zack's consensus, for example, by 9 cents.
The company's net income of $263.2 million, however, was nearly a million dollars lower than it was in the first quarter of 2018. That year's net income hit $264.1 million, partly because Omnicom temporarily benefited from lower income tax expenses after resolving foreign tax claims. For the first quarter of 2019, its income tax rate was 26.8% vs. 24.3% for the same period in 2018.
Foreign exchange rates took a bite out of Omnicom's worldwide revenue as well, which in the first quarter of 2019, fell by 4.4%, to just under $3.5 billion.
Several businesses, however, saw hikes in the first quarter of 2019 vs. 2018, including advertising, which increased 5.1%, and health care, which gained 6.8%. Other areas dropped by a smaller amount than the year prior, such as support services, which fell by 3.3%.
Omnicom Group is a global marketing and corporate communications company specializing in advertising, marketing, public relations and other communications services. It has 5,000 clients in more than 100 countries, according to the company.