US Out of home stocks lag during second quarter.

US Out of home advertising stocks lagged the Standard and Poors 500 during the second quarter of 2017.  A stock index consisting of Lamar, Outfront and Clear Channel Outdoor declined by 4.2% during the second quarter of 2017 while the Standard and Poors 500 was up 2.7% for the quarter.

US Out of Home Stocks (Lamar, Outfront and Clear Channel Outdoor) versus S&P 500 for Quarter Ended June 30, 2017

Lamar was flat while Outfront and Clear Channel stock underperformed the market during the second quarter of 2017.  The chart below compares the performance of the S&P 500 (dark blue), Lamar (orange), Outfront (light blue) and Clear Channel Outdoor (purple).

Lamar, Outfront and Clear Channel Outdoor stock return for 3 months ended June 2017

  • Lamar was flat for the second quarter of 2017 versus a 2.7% increase in the S&P 500.
  • Outfront declined 11% during the second quarter of 2017 versus a 2.7% increase in the S&P 500.
  • Clear Channel Outdoor declined 20% during the second quarter of 2017 versus a 2.7% annualized increase in the S&P 500.  Insider notes, however, that Clear Channel Outdoor has been trending up since May

What to make of the weakness in Outfront and Clear Channel Outdoor.  Stubbornly high expenses? A failure by Outfront to have a compelling narrative for weak revenue performance during the last earnings conference call?  Worries about Clear Channel Outdoor debt?  Maybe a mix of all three.


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