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Outfront Media (OUT) Surpasses Q3 FFO and Revenue Estimates
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OUTFRONT Media Inc. (OUT - Free Report) delivered third-quarter 2021 adjusted funds from operations (AFFO) per share of 54 cents, surpassing the Zacks Consensus Estimate of 34 cents. In the prior-year quarter, the company reported an AFFO per share deficit of 19 cents.
Revenues of $399.2 million outpaced the Zacks Consensus Estimate of $388.3 million in the third quarter. Also, the revenue figure jumped 41.4% year over year.
The company’s third-quarter results reflect a rise in revenues, partially offset by higher operating expenses.
Quarter in Detail
Billboard revenues were $317.4 million, marking year-over-year growth of 32.3%. This upside resulted from higher average revenues per display (referred to as yield) as compared to the year-ago quarter.
Transit and other revenues of $81.8 million surged 92.9% year over year. This upswing mainly resulted from the increase in yield compared to the prior-year period.
OUTFRONT Media reported an operating income of $65 million in the third quarter compared with the $25.1 million posted in the year-earlier quarter.
Operating expenses of $199.8 million flared up 28.2%, year over year. This chiefly resulted from guaranteed minimum annual payments to the New York Metropolitan Transportation Authority, and higher billboard and transit revenues.
Balance Sheet
Net cash flow used for operating activities for the nine-month period ended Sep 30, 2021, was $45.1 million as against the net cash flow of $86 million provided by operating activities in the prior-year period.
As of Sep 30, 2021, OUTFRONT Media’s liquidity position comprised unrestricted cash of $510.3 million and $496 million of availability under its $500-million revolving credit facility, net of $4 million of issued letters of credit. In the third quarter, the company sold no share under its at-the-market (ATM) equity program and had $232.5 million available under the ATM program at the quarter’s end.
Dividend Update
On Oct 26, OUTFRONT Media announced its common stock quarterly cash dividend of 10 cents per share. This dividend will be paid out on Dec 31, to its shareholders of record at the close of business on Dec 3, 2021.
Prologis, Inc. (PLD - Free Report) came up with third-quarter core FFO per share of $1.04, surpassing the Zacks Consensus Estimate of $1.03. Results reflected solid increases in market rents and valuations amid unprecedented low vacancies in its markets.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2021 FFO per share of $1.73 beat the Zacks Consensus Estimate of $1.70. The quarterly figure also exceeded the mid-point of the company’s third-quarter guidance by 4 cents, highlighting the better-than-projected results from the in-service portfolio and improved parking revenues.
Highwoods Properties, Inc.’s (HIW - Free Report) FFO per share of 96 cents topped the Zacks Consensus Estimate of 93 cents for the September-end quarter. Rental and other revenues of $195.5 million outpaced the consensus mark of $192.2 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Outfront Media (OUT) Surpasses Q3 FFO and Revenue Estimates
OUTFRONT Media Inc. (OUT - Free Report) delivered third-quarter 2021 adjusted funds from operations (AFFO) per share of 54 cents, surpassing the Zacks Consensus Estimate of 34 cents. In the prior-year quarter, the company reported an AFFO per share deficit of 19 cents.
Revenues of $399.2 million outpaced the Zacks Consensus Estimate of $388.3 million in the third quarter. Also, the revenue figure jumped 41.4% year over year.
The company’s third-quarter results reflect a rise in revenues, partially offset by higher operating expenses.
Quarter in Detail
Billboard revenues were $317.4 million, marking year-over-year growth of 32.3%. This upside resulted from higher average revenues per display (referred to as yield) as compared to the year-ago quarter.
Transit and other revenues of $81.8 million surged 92.9% year over year. This upswing mainly resulted from the increase in yield compared to the prior-year period.
OUTFRONT Media reported an operating income of $65 million in the third quarter compared with the $25.1 million posted in the year-earlier quarter.
Operating expenses of $199.8 million flared up 28.2%, year over year. This chiefly resulted from guaranteed minimum annual payments to the New York Metropolitan Transportation Authority, and higher billboard and transit revenues.
Balance Sheet
Net cash flow used for operating activities for the nine-month period ended Sep 30, 2021, was $45.1 million as against the net cash flow of $86 million provided by operating activities in the prior-year period.
As of Sep 30, 2021, OUTFRONT Media’s liquidity position comprised unrestricted cash of $510.3 million and $496 million of availability under its $500-million revolving credit facility, net of $4 million of issued letters of credit. In the third quarter, the company sold no share under its at-the-market (ATM) equity program and had $232.5 million available under the ATM program at the quarter’s end.
Dividend Update
On Oct 26, OUTFRONT Media announced its common stock quarterly cash dividend of 10 cents per share. This dividend will be paid out on Dec 31, to its shareholders of record at the close of business on Dec 3, 2021.
Currently, OUTFRONT Media carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote
Performance of Other REITs
Prologis, Inc. (PLD - Free Report) came up with third-quarter core FFO per share of $1.04, surpassing the Zacks Consensus Estimate of $1.03. Results reflected solid increases in market rents and valuations amid unprecedented low vacancies in its markets.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2021 FFO per share of $1.73 beat the Zacks Consensus Estimate of $1.70. The quarterly figure also exceeded the mid-point of the company’s third-quarter guidance by 4 cents, highlighting the better-than-projected results from the in-service portfolio and improved parking revenues.
Highwoods Properties, Inc.’s (HIW - Free Report) FFO per share of 96 cents topped the Zacks Consensus Estimate of 93 cents for the September-end quarter. Rental and other revenues of $195.5 million outpaced the consensus mark of $192.2 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.