Shareholders in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) had a terrible week, as shares crashed 20% to US$2.07 in the week since its latest full-year results. Revenues came in at US$2.7b, in line with forecasts and the company reported a statutory loss of US$0.88 per share, roughly in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Taking into account the latest results, Clear Channel Outdoor Holdings's four analysts currently expect revenues in 2020 to be US$2.70b, approximately in line with the last 12 months. Statutory losses are forecast to balloon 84% to US$0.14 per share. Before this earnings announcement, analysts had been forecasting revenues of US$2.69b and losses of US$0.22 per share in 2020. There was no real change to the revenue estimates, but analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$3.38, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Clear Channel Outdoor Holdings, with the most bullish analyst valuing it at US$4.00 and the most bearish at US$2.70 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Clear Channel Outdoor Holdings shareholders.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues next year. Historically, Clear Channel Outdoor Holdings's sales have shrunk approximately 1.7% annually over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 4.0% next year. Although Clear Channel Outdoor Holdings's revenues are expected to improve, it seems that analysts are still expecting it to grow slower than the wider market.
The Bottom Line
The most important thing to note from these estimates is that the consensus increased its forecast losses next year, suggesting all may not be well at Clear Channel Outdoor Holdings. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Clear Channel Outdoor Holdings's revenues are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Clear Channel Outdoor Holdings analysts - going out to 2022, and you can see them free on our platform here.
It might also be worth considering whether Clear Channel Outdoor Holdings's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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