The oOh!Media Ltd (ASX: OML) share price is one to watch after announcing an earnings upgrade for FY19.
Why could the oOh!Media share price climb higher this morning?
The oOh!Media share price could climb higher today after the company upgraded its FY19 underlying earnings before interest, tax, depreciation and amortisation (EBITDA).
Underlying EBITDA for the year ended 31 December 2019 is expected to be between $138 million to $143 million.
On 16 August, the group revised its FY 2019 underlying EBITDA guidance to a $125 million to $135 million range. The downgrade came as third quarter advertising bookings declined compared to FY18.
However, oOh! has seen an improvement in September bookings and for the fourth quarter, which has resulted in yesterday's upgrade.
The oOh!Media share price could be climbing higher in early trade following the positive news.
Did oOh! announce anything else?
The group reconfirmed the integration of Commute – a national network of bus shelter and roadside advertising – remains on track with an expected $16 million in cost synergies for FY19.
A leverage ratio of below or approaching 2 times in 2020 remains the target.
The group expects to release its FY19 results on 24 February 2020 and I'd be keeping an eye on the oOh!media share price until then.
How has oOh! performed on the ASX this year?
The oOh!media share price slumped 1.63% lower yesterday to close at $3.01 per share.
That's a long way shy of its $4.74 per share 52-week high set back in late July. The group's shares plummeted more than 20% on 16 August after a trading update and its earnings downgrade.
The Aussie media and advertising group currently has a market cap of $729 million. oOh! trades on a price-to-earnings multiple of 31.4 times and still yields a tidy 3.65% net dividend yield.
The oOh!media share price could be set to climb higher this morning following the earnings upgrade, in what would be a welcome boost for shareholders.
