OUTFRONT Media Q4 AFFO & Revenues Beat, Interest Expenses Dip

OUTFRONT Media Inc. OUT reported fourth-quarter 2024 adjusted funds from operations (AFFO) per share of 69 cents, beating the Zacks Consensus Estimate of 63 cents. The figure increased 7.8% from the prior-year quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.Results reflect better-than-anticipated revenues, backed by lower interest expenses, higher adjusted OIBDA and improved yields.Quarterly revenues came in at $493.2 million, surpassing the Zacks Consensus Estimate of $490.1 million. However, the top line decreased 1.6% year over year.Per Nick Brien, Interim CEO of OUTFRONT Media, "We finished the year well, with fourth quarter revenue growth coming in slightly ahead of our expectations and full-year AFFO nicely above the guidance we provided last year.”For full-year 2024, AFFO per share came in at $1.80, higher by 5.3% over the prior-year tally and beating the Zacks Consensus Estimate of $1.76. Moreover, revenues increased marginally to $1.83 billion.OUTFRONT Media Inc. Price, Consensus and EPS Surprise OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. QuoteOUT’s Fourth Quarter in DetailDuring the reported quarter, billboard revenues were $374.6 million, reflecting year-over-year growth of 2%. The upside resulted from higher average revenue per display (yield), driven mainly by the impact of programmatic and direct sale advertising platforms on digital billboard revenues and higher proceeds from condemnations. Our estimate was pegged at $374.7 million.The company’s transit revenues of $116.5 million increased 9.1% from the year-ago quarter. The growth was primarily due to better yield.OUTFRONT Media’s operating income totaled $111.1 million in the fourth quarter compared with an operating income of $111 million in the year-ago quarter.Adjusted OIBDA of $155.2 million increased 2.3% compared to the same prior-year period.Operating expenses were $237.4 million, which decreased 3.9% year over year. The fall was mostly due to the impact of the sale of the Canadian business and lower variable property lease expenses. The decrease was partially offset by higher maintenance and utilities costs, production expenses and higher transit franchise costs, including higher guaranteed minimum annual payments to the New York Metropolitan Transportation Authority.Net interest expenses of $36.6 million decreased 11.5% from $40.8 million in the prior-year period. The fall was mainly due to lower interest rates compared with the year-ago quarter and a lower debt balance. The weighted average cost of debt, as of Dec. 31, 2024, was 5.4% compared with 5.7% in the prior-year period.OUT’s Cash Flow & Balance Sheet PositionNet cash flow provided by operating activities for the year ended Dec. 31, 2024 was $299.2 million, which increased from $254.2 million in the prior-year period.As of Dec. 31, 2024, OUTFRONT Media’s liquidity position comprised unrestricted cash of $46.9 million and $494.5 million of availability under its $500 million revolving credit facility, net of $5.5 million of issued letters of credit and $140.0 million of additional availability under its accounts receivable securitization facility.In the reported quarter, no shares of the company's common stock were sold under its at-the-market (ATM) equity program. It had $232.5 million available under the ATM program at the quarter’s end.OUT’s Dividend UpdateConcurrent with its fourth-quarter earnings release, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on March 31 to its shareholders of record as of March 7, 2025.OUT’s Zacks RankCurrently, the company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other REITsPublic Storage PSA reported a fourth-quarter 2024 core FFO per share of $4.21, missing the Zacks Consensus Estimate of $4.23. However, the figure increased marginally year over year.Results reflected lower same-store revenues year over year due to a decline in occupancy. However, a decent increase in realized annual rent per occupied square foot positively impacted the performance. PSA also benefited from its expansion efforts through acquisitions, developments and extensions.Lamar Advertising Company LAMR reported a fourth-quarter 2024 AFFO per share of $2.21, meeting the Zacks Consensus Estimate. The figure also compared favorably with the prior-year quarter's tally of $2.10.LAMR’s results reflected year-over-year growth in the top line. However, higher direct advertising and general and administrative expenses during the quarter acted as a dampener.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.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Public Storage (PSA): Free Stock Analysis Report Lamar Advertising Company (LAMR): Free Stock Analysis Report OUTFRONT Media Inc. (OUT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks