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Omnicom (NYSE:OMC) is expected to report Q3 earnings Tuesday Oct. 21 before market open, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 68c on revenue of $3.36B. The consensus range is 67c to 71c for EPS, and revenue of $3.3B to $3.45B, according to First Call.

Analyst Views

Of the quarter, Zacks Equity says the company continues to generate solid organic revenue growth and new business wins. In addition, management continues to acquire complementary companies that either serve or have the ability to serve the existing client base through the extension of the company's platform of services. However, the firm believes an intensely competitive advertising environment and worries about the challenging economy affecting the level of advertising spending are headwinds that can restrain revenue and earnings growth.

Wachovia analyst John Janedis believes Omnicom will report lower than expected earnings due to a lower outlook for advertising spending. Janedis now expects advertising spending in the U.S. to fall 0.8% based on deterioration in the economy in 2008 and 2009.

In September, the Guardian reported that Omnicom is close to a takeover deal to buy Beattie McGuinness Bungay in an effort to build up its TBWA/London agency.

Source: Earnings Preview: Omnicom