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OUTFRONT Media (OUT) Down 13.6% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for OUTFRONT Media Inc. (OUT - Free Report) . Shares have lost about 13.6% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is OUT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Outfront Media Q4 FFO Beats Estimates, Revenues Up Y/Y
Outfront Media reported fourth-quarter 2017 adjusted FFO per share of 60 cents, surpassing the Zacks Consensus Estimate of 56 cents. Further, the figure came in higher than the year-ago quarter tally of 56 cents.
Results indicate higher local sales in transit and other revenues, benefit from acquired digital billboards in Canada as well as the conversion of static billboards to digital.
Revenues for the quarter came in at $401.3 million, missing the Zacks Consensus Estimate of $404.7 million. However, revenues rose 1% from the year-ago figure.
For full-year 2017, adjusted FFO per share came in at $2.00, 6.1% lower than the year-ago figure of $2.13. Nonetheless, revenues for the full year came in at $1.52 billion, up nearly 0.4% from $1.51 billion reported in 2016.
Quarter in Detail
Billboard revenues of $276.4 million in the quarter indicated a marginal year-over-year decrease of $0.1 million. Results were primarily affected by a drop in average revenues per day (yield) and the net impact of new and lost billboards in the period. However, these were partially offset by an increase in revenues from the conversion of digital billboards and acquisition of digital billboards in Canada.
Transit and other revenues of $124.9 million increased 3.3% from the prior-year quarter. This was due to the net impact of franchises that were won and lost in the period, partly offset by a decrease in yield.
Operating expenses of $217.4 million inched up 1% year over year, mainly due to higher transit franchise expenses relating to Massachusetts Bay Transportation Authority transit contract, impact from the acquisition of digital billboards in Canada and elevated expenses associated with the Sports Marketing operating segment. These were offset, to some extent, by lower transit franchise expenses under the terms of the new transit franchise agreement with New York Metropolitan Transportation Authority (MTA).
Adjusted operating income before depreciation and amortization inched up 3.3% year over year to $121.1 million.
Net cash flow resulting from operating activities for the year ending Dec 31, 2017, came in at $249.3 million, down from $287.1 million recorded in the comparable period last year. Results were affected primarily due to the lower net income as adjusted for non-cash items and the timing of payments made under the MTA agreement.
As of Dec 31, 2017, Outfront Media’s liquidity position comprised cash of $48.3 million, as well as $341.4 million of availability under its $430.0 revolving credit facility, net of $88.6 million of issued letters of credit against the revolving credit facility.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter. In the past month, the consensus estimate has shifted by 16.7% due to these changes.
At this time, OUT has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. It's no surprise OUT has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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OUTFRONT Media (OUT) Down 13.6% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for OUTFRONT Media Inc. (OUT - Free Report) . Shares have lost about 13.6% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is OUT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Outfront Media Q4 FFO Beats Estimates, Revenues Up Y/Y
Outfront Media reported fourth-quarter 2017 adjusted FFO per share of 60 cents, surpassing the Zacks Consensus Estimate of 56 cents. Further, the figure came in higher than the year-ago quarter tally of 56 cents.
Results indicate higher local sales in transit and other revenues, benefit from acquired digital billboards in Canada as well as the conversion of static billboards to digital.
Revenues for the quarter came in at $401.3 million, missing the Zacks Consensus Estimate of $404.7 million. However, revenues rose 1% from the year-ago figure.
For full-year 2017, adjusted FFO per share came in at $2.00, 6.1% lower than the year-ago figure of $2.13. Nonetheless, revenues for the full year came in at $1.52 billion, up nearly 0.4% from $1.51 billion reported in 2016.
Quarter in Detail
Billboard revenues of $276.4 million in the quarter indicated a marginal year-over-year decrease of $0.1 million. Results were primarily affected by a drop in average revenues per day (yield) and the net impact of new and lost billboards in the period. However, these were partially offset by an increase in revenues from the conversion of digital billboards and acquisition of digital billboards in Canada.
Transit and other revenues of $124.9 million increased 3.3% from the prior-year quarter. This was due to the net impact of franchises that were won and lost in the period, partly offset by a decrease in yield.
Operating expenses of $217.4 million inched up 1% year over year, mainly due to higher transit franchise expenses relating to Massachusetts Bay Transportation Authority transit contract, impact from the acquisition of digital billboards in Canada and elevated expenses associated with the Sports Marketing operating segment. These were offset, to some extent, by lower transit franchise expenses under the terms of the new transit franchise agreement with New York Metropolitan Transportation Authority (MTA).
Adjusted operating income before depreciation and amortization inched up 3.3% year over year to $121.1 million.
Net cash flow resulting from operating activities for the year ending Dec 31, 2017, came in at $249.3 million, down from $287.1 million recorded in the comparable period last year. Results were affected primarily due to the lower net income as adjusted for non-cash items and the timing of payments made under the MTA agreement.
As of Dec 31, 2017, Outfront Media’s liquidity position comprised cash of $48.3 million, as well as $341.4 million of availability under its $430.0 revolving credit facility, net of $88.6 million of issued letters of credit against the revolving credit facility.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter. In the past month, the consensus estimate has shifted by 16.7% due to these changes.
OUTFRONT Media Inc. Price and Consensus
OUTFRONT Media Inc. Price and Consensus | OUTFRONT Media Inc. Quote
VGM Scores
At this time, OUT has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. It's no surprise OUT has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.