It has been about a month since the last earnings report for Outfront Media (OUT Quick QuoteOUT - Free Report) . Shares have added about 3.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Outfront Media due for a pullback? 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 Q1 AFFO Deficit Comes as Expected

OUTFRONT Media delivered first-quarter 2021 AFFO per share deficit of 17 cents, meeting the Zacks Consensus Estimate. In the prior-year quarter, the company reported AFFO per share of 28 cents.

Revenues were $259.2 million for the first quarter, missing the Zacks Consensus Estimate of $271.3 million. Also, the revenue figure plunged 32.7% year over year.

The company’s first-quarter results reflect a decline in operating expenses. However, a decline in revenues on dwindling demand for its services was a headwind.

Quarter in Detail

Billboard revenues were $223.6 million, indicating a year-over-year fall of 17.5%. The downside resulted from lower average revenues per display (referred to as yield) due to the pandemic’s impact on customer advertising expenditure and overall demand for the company’s services.

Transit and other revenues of $35.6 million slumped 68.9% year over year. The decline was mainly due to the fall in yield because of the pandemic’s impact on customer advertising expenditure and overall demand for the company’s services, and sale of its sports marketing operating segment.

OUTFRONT Media reported an operating loss of $31 million in the first quarter against an operating income of $33.8 million in the prior-year quarter.

Operating expenses of $177.6 million plunged 21% year over year. This mainly resulted from lower transit franchise expenses, decreased posting, maintenance and other expenses, and a drop in billboard property lease expenses.

Balance Sheet

Net cash flow used for operating activities for the quarter ended Mar 31, 2021, was $10.8 million against net cash flow of $14.9 million provided by operating activities for the quarter ended Mar 31, 2020.

As of Dec 31, 2021, OUTFRONT Media’s liquidity position comprised of unrestricted cash of $560 million and $497.9 million of availability under its $500-million revolving credit facility, net of $2.1 million of issued letters of credit. In the first quarter, the company sold no share under its at-the-market (“ATM”) equity program and had $232.5 million available under its ATM program at the quarter end.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month. The consensus estimate has shifted -23.81% due to these changes.

VGM Scores

Currently, Outfront Media has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Outfront Media has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.