Clear Channel Outdoor Holdings Misses Where it Counts

Clear Channel Outdoor Holdings (NYSE: CCO  ) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Clear Channel Outdoor Holdings met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. GAAP loss per share expanded.

Gross margins grew, operating margins grew, net margins contracted.

Revenue details
Clear Channel Outdoor Holdings chalked up revenue of $650.2 million. The six analysts polled by S&P Capital IQ wanted to see net sales of $654.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.22. The five earnings estimates compiled by S&P Capital IQ predicted -$0.14 per share. GAAP EPS were -$0.22 for Q1 against -$0.15 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.4%, 90 basis points better than the prior-year quarter. Operating margin was -0.2%, 110 basis points better than the prior-year quarter. Net margin was -11.4%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $770.3 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $3.01 billion. The average EPS estimate is -$0.11.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 84 members out of 119 rating the stock outperform, and 35 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Clear Channel Outdoor Holdings a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clear Channel Outdoor Holdings is hold, with an average price target of $5.80.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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