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With the business potentially at an important milestone, we thought we'd take a closer look at Clear Channel Outdoor Holdings, Inc.'s (NYSE:CCO) future prospects. Clear Channel Outdoor Holdings, Inc. owns, operates, and sells advertising displays in the United States and internationally. On 31 December 2020, the US$983m market-cap company posted a loss of US$583m for its most recent financial year. Many investors are wondering about the rate at which Clear Channel Outdoor Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
According to the 5 industry analysts covering Clear Channel Outdoor Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$57m in 2023. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Clear Channel Outdoor Holdings' upcoming projects, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Clear Channel Outdoor Holdings is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
There are key fundamentals of Clear Channel Outdoor Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Clear Channel Outdoor Holdings, take a look at Clear Channel Outdoor Holdings' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
Valuation: What is Clear Channel Outdoor Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Clear Channel Outdoor Holdings is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Clear Channel Outdoor Holdings’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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