What is Happening to the Share Price of QMS Media Ltd?

What does QMS Media do?

QMS Media Ltd [ASX:QMS] is an Out of Home (OOH) — or outdoor — media company.

You’ll see their displays from city buildings, freeways and public transport areas. It’s advertising that reaches people where they work, travel and play — and you can’t turn it off.

It’s a sector to watch, one that’s been booming of late. This boom has taken place on the back of growth in digitised signage, which appeal to advertisers because they can be updated at any time of the day, making them relevant and current compared with static billboards.

The company has set a fast pace, having gone from four to 29 digital billboards in the space of just 12 months.

What’s moving the QMS share price?

QMS is in a strong sector at present. The overall OOH media industry is continuing to show strong revenue growth, with an 18% year-on-year increase in revenue for the first quarter of 2016. This quarter’s results follow OOH’s trend of all-time high figures, and follows a string of monthly increases for 2016, including a 19.6% rise for the month of March, to $70m

The company released their half year results on 29 February.

Some highlights:

  • Net profit of $5.7 million;
  • Revenue of $44 million, up 50%.

The strong revenues reflect the expansion and uplift in the digital network.

What now for QMS shares?

Outdoor digitised advertising is a growing sector. It has led to a resurgence of advertisers returning to outdoor advertising — something that is backed up by strong industry growth figures.

If you bring up a stock chart of the company share price, you’ll see it has found solid support at $1.11 over the last four months. That support must continue to hold. If the share price should break that support, then it means that revenues are softening.

Look for the QMS share price to make some higher bottoms on the chart. It’s only a short run to all-time new highs. The QMS share price is slightly up in today’s trading. It’s one to keep on the watchlist.

Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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