The stock has not done much since the last earnings. This is despite the fact that the results were better than estimates, and the company posted a net profit after a couple of quarters of net loss. In any case, the stock has done well over the past one year with a 45% appreciation. However, it seems to be still recovering from the massive fall in June. On a ttm basis, the gross profit is $1.34 billion on a revenue of $2.95 billion. The operating margin on a ttm basis is around 10%. The ttm net loss is around $200 million, but that is mainly due to the $258 million impairment hit in Q4'12 on account of extinguishment of debt. The company needs to post a few more good quarters to be able to improve the sentiments. This is because the company has not done too well over the years as the revenue growth has been inconsistent. Even the bottom-line performance has been erratic. Further, the debt on books is high, and has increased over the last year. The cash position has also weakened over the last few quarters. So the investors may like to see more evidence of improvement in fundamentals. Q2'13 seems to be a good start. The outdoor advertising segment has the presence of big players like Lamar (LAMR) and CBS (CBS). Advertising itself is a dynamic field and outdoor segment has been facing challenges from online advertising. Concepts like social media sponsorship /native advertising are gaining importance. A company in this segment, IZEA (IZEA) recently posted record Q2 numbers. Clear Channel has to continuously adapt the changing marketplace to maintain its competitive advantage. If it can keep the debt under control, and post more quarters of net profit, then the outlook will improve. The power of a company like Clear Channel cannot be underestimated.
