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OUTFRONT Media (OUT) Q3 FFO Beats, Revenues Miss Estimates
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OUTFRONT Media Inc. (OUT - Free Report) delivered third-quarter 2020 adjusted funds from operations (FFO) per share of 19 cents, outpacing the Zacks Consensus Estimate of 12 cents. In the prior-year quarter, the company had reported adjusted FFO per share of 64 cents.
Revenues came in at $282.3 million for the third quarter, missing the Zacks Consensus Estimate of $284.7 million. The revenue figure also plunged 39% year over year.
The company’s third-quarter results reflect a decline in operating expenses and selling, general and administrative expenses. However, a decline in revenues on dwindling demand for its services is a concern.
In the reported quarter, the company sold its sports marketing business.
Quarter in Detail
Billboard revenues came in at $239.9 million, indicating a year-over-year fall of 23.1%. This downside resulted from lower average revenue per display, referred to as yield. Transit and other revenues of $42.4 million slumped 71.8%, year on year. The decline was mainly due to the fall in yield, sale of the company’s sports marketing business and a drop in third-party digital equipment sales.
OUTFRONT Media reported an operating income of $25.1 million in the third quarter, tanking 70.6% from the prior-year quarter.
Operating expenses of $155.8 million plunged 36.5% year over year. This mainly resulted from lower transit franchise expense, decreased posting, maintenance and other expenses, and a drop in billboard property lease expense.
Balance Sheet
Net cash flow, resulting from operating activities for the third quarter ended Sep 30, 2020, came in at $86 million, plummeting 46.9% year on year. This primarily reflects the negative impact of a decrease in net income.
As of Sep 30, 2020, OUTFRONT Media had a solid liquidity position, which comprised unrestricted cash of $690.6 million and $498.4 million of availability under its $500-million revolving credit facility, net of $1.6 million of issued letters of credit. During the third quarter, the company sold no shares under its at-the-market (ATM) equity program and had $232.5 million available under its ATM program at quarter end.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2020 FFO per share of $1.57 missed the Zacks Consensus Estimate of $1.64. The reported figure also decreased 4.3% from the year-ago quarter’s $1.64.
SITE Centers Corp.’s (SITC - Free Report) third-quarter operating FFO per share of 23 cents came in line with the Zacks Consensus Estimate. The reported figure, however, declined 23.3% year over year.
Highwoods Properties, Inc. (HIW - Free Report) third-quarter 2020 FFO per share of 86 cents missed the Zacks Consensus Estimate of 88 cents. The figure included 5 cents from debt extinguishment charges and non-cash straight-line credit losses. Nonetheless, the reported figure improved 3.6% from the 83 cents reported in the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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OUTFRONT Media (OUT) Q3 FFO Beats, Revenues Miss Estimates
OUTFRONT Media Inc. (OUT - Free Report) delivered third-quarter 2020 adjusted funds from operations (FFO) per share of 19 cents, outpacing the Zacks Consensus Estimate of 12 cents. In the prior-year quarter, the company had reported adjusted FFO per share of 64 cents.
Revenues came in at $282.3 million for the third quarter, missing the Zacks Consensus Estimate of $284.7 million. The revenue figure also plunged 39% year over year.
The company’s third-quarter results reflect a decline in operating expenses and selling, general and administrative expenses. However, a decline in revenues on dwindling demand for its services is a concern.
In the reported quarter, the company sold its sports marketing business.
Quarter in Detail
Billboard revenues came in at $239.9 million, indicating a year-over-year fall of 23.1%. This downside resulted from lower average revenue per display, referred to as yield. Transit and other revenues of $42.4 million slumped 71.8%, year on year. The decline was mainly due to the fall in yield, sale of the company’s sports marketing business and a drop in third-party digital equipment sales.
OUTFRONT Media reported an operating income of $25.1 million in the third quarter, tanking 70.6% from the prior-year quarter.
Operating expenses of $155.8 million plunged 36.5% year over year. This mainly resulted from lower transit franchise expense, decreased posting, maintenance and other expenses, and a drop in billboard property lease expense.
Balance Sheet
Net cash flow, resulting from operating activities for the third quarter ended Sep 30, 2020, came in at $86 million, plummeting 46.9% year on year. This primarily reflects the negative impact of a decrease in net income.
As of Sep 30, 2020, OUTFRONT Media had a solid liquidity position, which comprised unrestricted cash of $690.6 million and $498.4 million of availability under its $500-million revolving credit facility, net of $1.6 million of issued letters of credit. During the third quarter, the company sold no shares under its at-the-market (ATM) equity program and had $232.5 million available under its ATM program at quarter end.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote
Currently, OUTFRONT Media carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITS
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2020 FFO per share of $1.57 missed the Zacks Consensus Estimate of $1.64. The reported figure also decreased 4.3% from the year-ago quarter’s $1.64.
SITE Centers Corp.’s (SITC - Free Report) third-quarter operating FFO per share of 23 cents came in line with the Zacks Consensus Estimate. The reported figure, however, declined 23.3% year over year.
Highwoods Properties, Inc. (HIW - Free Report) third-quarter 2020 FFO per share of 86 cents missed the Zacks Consensus Estimate of 88 cents. The figure included 5 cents from debt extinguishment charges and non-cash straight-line credit losses. Nonetheless, the reported figure improved 3.6% from the 83 cents reported in the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>