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Why Is Outfront Media (OUT) Down 14.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Outfront Media (OUT - Free Report) . Shares have lost about 14.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Outfront Media 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 Q1 FFO Beats Estimates, Revenues Up Y/Y
OUTFRONT Media reported first-quarter 2022 adjusted funds from operations AFFO per share of 23 cents. The figure marginally beat the Zacks Consensus Estimate of 22 cents.
The company’s first-quarter results reflect a rise in revenues, partially offset by higher operating expenses.
The quarterly revenues of $373.5 million outpaced the Zacks Consensus Estimate of $366.9 million. On a year-over-year basis, revenues increased 44.1% from $259.2 million.
According to Jeremy Male, chairman and CEO of OUTFRONT Media, "Q1 was another strong quarter, with total revenues up 44% year-over-year. High demand for our billboards, both static and digital, drove U.S. Billboard revenues up to levels nearly 20% above 2019."
Quarter in Detail
During the reported quarter, billboard revenues were $298.2 million, marking year-over-year growth of 33.4%. The upside resulted from higher average revenues per display (referred to as yield) compared with the prior-year quarter.
The company’s transit and other revenues of $75.3 million more than doubled from $35.6 million reported a year ago. The upswing mainly resulted from the increase in yield compared with the prior-year period.
OUTFRONT Media’s operating income totaled $28.5 million in the first quarter against a deficit of $31 million a year ago.
Operating expenses were $212.8 million, up 19.8% year over year. The rise was primarily due to costs associated with higher billboard and transit revenues. Also, higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority were a contributing factor.
Cash Flow & Balance Sheet
Net cash flow provided by operating activities in the quarter ended Mar 31, 2022, was $20.5 million against net cash flow used for operating activities of $10.8 million during the prior-year period.
As of Mar 31, 2022, OUTFRONT Media’s liquidity position comprised unrestricted cash of $355.7 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.
As of Mar 31, 2022, the company’s total debt was $2.7 billion, excluding $26.4 million of debt issuance costs. It included a $600 million term loan and $2.1 billion of senior unsecured notes.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 7.95% due to these changes.
VGM Scores
Currently, Outfront Media has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Outfront Media has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Outfront Media is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, American Tower (AMT - Free Report) , a stock from the same industry, has gained 6.3%. The company reported its results for the quarter ended March 2022 more than a month ago.
American Tower reported revenues of $2.66 billion in the last reported quarter, representing a year-over-year change of +23.3%. EPS of $1.56 for the same period compares with $2.46 a year ago.
American Tower is expected to post earnings of $2.45 per share for the current quarter, representing a year-over-year change of +1.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
American Tower has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Outfront Media (OUT) Down 14.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Outfront Media (OUT - Free Report) . Shares have lost about 14.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Outfront Media 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 Q1 FFO Beats Estimates, Revenues Up Y/Y
OUTFRONT Media reported first-quarter 2022 adjusted funds from operations AFFO per share of 23 cents. The figure marginally beat the Zacks Consensus Estimate of 22 cents.
The company’s first-quarter results reflect a rise in revenues, partially offset by higher operating expenses.
The quarterly revenues of $373.5 million outpaced the Zacks Consensus Estimate of $366.9 million. On a year-over-year basis, revenues increased 44.1% from $259.2 million.
According to Jeremy Male, chairman and CEO of OUTFRONT Media, "Q1 was another strong quarter, with total revenues up 44% year-over-year. High demand for our billboards, both static and digital, drove U.S. Billboard revenues up to levels nearly 20% above 2019."
Quarter in Detail
During the reported quarter, billboard revenues were $298.2 million, marking year-over-year growth of 33.4%. The upside resulted from higher average revenues per display (referred to as yield) compared with the prior-year quarter.
The company’s transit and other revenues of $75.3 million more than doubled from $35.6 million reported a year ago. The upswing mainly resulted from the increase in yield compared with the prior-year period.
OUTFRONT Media’s operating income totaled $28.5 million in the first quarter against a deficit of $31 million a year ago.
Operating expenses were $212.8 million, up 19.8% year over year. The rise was primarily due to costs associated with higher billboard and transit revenues. Also, higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority were a contributing factor.
Cash Flow & Balance Sheet
Net cash flow provided by operating activities in the quarter ended Mar 31, 2022, was $20.5 million against net cash flow used for operating activities of $10.8 million during the prior-year period.
As of Mar 31, 2022, OUTFRONT Media’s liquidity position comprised unrestricted cash of $355.7 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.
As of Mar 31, 2022, the company’s total debt was $2.7 billion, excluding $26.4 million of debt issuance costs. It included a $600 million term loan and $2.1 billion of senior unsecured notes.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 7.95% due to these changes.
VGM Scores
Currently, Outfront Media has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Outfront Media has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Outfront Media is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, American Tower (AMT - Free Report) , a stock from the same industry, has gained 6.3%. The company reported its results for the quarter ended March 2022 more than a month ago.
American Tower reported revenues of $2.66 billion in the last reported quarter, representing a year-over-year change of +23.3%. EPS of $1.56 for the same period compares with $2.46 a year ago.
American Tower is expected to post earnings of $2.45 per share for the current quarter, representing a year-over-year change of +1.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
American Tower has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.