There have been analyst upgrades for Clear Channel recently. The recent results were better than estimates both for the top and the bottom line. Importantly, the company reported a net profit of $8.91 million or $0.02 per share for the quarter, compared to a loss of $8.12 million or $0.02 per share in Q2'12. The revenues increased marginally from $761 million to $766 million (up ~1%). The stock has done well over the past one year. It has appreciated by 48% during the period, though it has remained in a tight range over the last few months. The reason for that is that the performance of the company in Q4'12 and Q1'13 was not very good. In Q4'12, the company reported a huge net loss due to impairments and extinguishment of debt. In Q1'13, the revenues declined significantly on sequential basis, and the net loss was substantial. The performance in Q2'13 is expected to change the sentiments, and if the company reports a few more good quarters, then it may gain more strength. Outdoor advertising is facing competition from various segments of the advertising market. Online advertising is also a source of competition, and new concepts like social media advertising are gaining importance. Advertisers favor online advertising for its reach, and concepts like social media sponsorship etc. are also gaining in popularity. Social media sponsorship company IZEA (IZEA) is using the power of celebrity influence to help advertisers attract customers. Within the outdoor segment also, there are formidable players like Lamar (LAMR) and CBS (CBS). Like many other peers, CCO has a large debt on books. On June 30, it was nearly $5 billion, and the cash on books was less than $400 million. However, the recent performance does improve the outlook, and hopefully stock will continue its upward march in the medium term.
