Benchmark Cuts Price Target on Clear Channel (CCO) on Weak Outlook and New Estimates
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Price: $1.44 --0%
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
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Benchmark is maintaining its Hold rating on shares of Clear Channel (NYSE: CCO) while reducing its price target from $14 to $12.
The company reported its Q3 results with sales topping expectations and earnings coming in well bellow the consensus. Sales rose 8 percent year over year as sales in Americas increase by 4 percent and sales internationally grew 11 percent.
Clear Channel added 57 digital displays during the quarter. The total is currently 768, but the firm believes it will be 800 by years end.
The firm notes the growth outlook for Q4 looked to be stalled with the Americas pacing flat year over year and international on track to gain 2 percent. Management highlighted limited visibility heading into Q4.
To go inline with the company's performance, market conditions, and their new outlook; Benchmark is now forecasting 7 percent revenue growth for FY11, OIBDAN of $725 million, and EPS of $0.15. The firm was previously forecasting 8 percent revenue growth, OIBDAN of $766 million, and EPS of $0.40. Benchmark is also cutting its FY12 EPS estimate from $0.42 to $0.14 on minimal anticipated revenue and EBITDA growth.
For more ratings news on Clear Channel click here and for the rating history of Clear Channel click here.
Shares of Clear Channel closed at $11.00 yesterday.
The company reported its Q3 results with sales topping expectations and earnings coming in well bellow the consensus. Sales rose 8 percent year over year as sales in Americas increase by 4 percent and sales internationally grew 11 percent.
Clear Channel added 57 digital displays during the quarter. The total is currently 768, but the firm believes it will be 800 by years end.
The firm notes the growth outlook for Q4 looked to be stalled with the Americas pacing flat year over year and international on track to gain 2 percent. Management highlighted limited visibility heading into Q4.
To go inline with the company's performance, market conditions, and their new outlook; Benchmark is now forecasting 7 percent revenue growth for FY11, OIBDAN of $725 million, and EPS of $0.15. The firm was previously forecasting 8 percent revenue growth, OIBDAN of $766 million, and EPS of $0.40. Benchmark is also cutting its FY12 EPS estimate from $0.42 to $0.14 on minimal anticipated revenue and EBITDA growth.
For more ratings news on Clear Channel click here and for the rating history of Clear Channel click here.
Shares of Clear Channel closed at $11.00 yesterday.
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