It has been about a month since the last earnings report for Outfront Media (OUT Quick QuoteOUT - Free Report) . Shares have added about 8.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.

OUTFRONT Media Q4 FFO Beats Estimates, Revenues Rise Y/Y

OUTFRONT Media delivered fourth-quarter 2021 adjusted FFO per share of 65 cents, surpassing the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, the company reported an adjusted FFO per share of 35 cents.

Quarterly revenues of $464.5 million outpaced the Zacks Consensus Estimate of $444.7 million. The revenue figure jumped 38.3% year over year.

The company’s fourth-quarter results reflect a rise in revenues, partially offset by higher operating expenses. The company also announced a rise in dividend to 30 cents per share from 10 cents paid earlier.

Quarter in Detail

Billboard revenues were $354 million, marking year-over-year growth of 26.7%. The upside resulted from higher average revenues per display (referred to as yield) as compared to the year-ago quarter, partly affected by the impact of the pandemic on overall demand for its services.

Transit and other revenues of $110.5 million surged 95.6% year over year. The upswing mainly resulted from the increase in yield compared with the prior-year period.

OUTFRONT Media reported an operating income of $105.2 million in the fourth quarter, significantly up from $39.5 million reported in the year-earlier quarter.

Operating expenses of $217 million were up 23.2% year over year. The rise was primarily due to higher transit franchise expenses and variable costs associated with higher billboard revenues.

Balance Sheet

Net cash flow provided by operating activities for the year ended Dec 31, 2021, was $98.8 million, down 24.3% year over year. This was due to an increase in accounts receivables and prepaid MTA equipment deployment costs, partly offset by an increase in accrued expenses and a fall in prepaid expenses.

As of Dec 31, 2021, OUTFRONT Media’s liquidity position comprised unrestricted cash of $424.8 million and $495.9 million of availability under its $500-million revolving credit facility, net of $4.1 million of issued letters of credit. In the quarter under review, the company sold no shares under its at-the-market (ATM) equity program and had $232.5 million available under the ATM program at the quarter’s end.

Guidance

Management expects 2022 total revenues to approach or potentially exceed pre-pandemic levels based on the current expectation of a solid performance in total billboard revenues, which surpassed pre-pandemic levels during the second half of 2021. Though total transit and other revenues are projected to incrementally improve in 2022, but still remain substantially below pre-pandemic levels. Total expenses are expected to increase in 2022 from the prior year and exceed pre-pandemic levels.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

The consensus estimate has shifted -6.25% due to these changes.

VGM Scores

At this time, Outfront Media has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 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.

Outlook

Outfront Media has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.