oOh!media (OML) shares buck the selloff with upgrade
Stock
oOh!media (OML) $3.71 as at 4/12/2019
Event
The media and advertising group upgraded guidance overnight which helped the stock buck broad based selling of the index today. The company upped EBITDA expectations for the calendar year end to $138-$143m, an 8% beat to both previous guidance and where consensus was sitting.
The upgrade comes despite what the company called a soft third quarter of advertising bookings followed by a strong recovery into the back end of the year. Operational expenditure is tracking within expectations, while CAPEX spend was talked towards the lower end. Synergies have also helped with the integration of the Commute business going to plan.
Advertising spend fluctuates significantly, but OML appear to be doing well in gaining market share while keep costs down. Shares are trading much better than an 8% beat would suggest given the negativity around the company while shares have tracked lower through the year.
oOh!media (OML) Chart
Market Matters Take/Outlook
