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OUTFRONT Media (OUT) Q4 FFO and Revenues Beat Estimates
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OUTFRONT Media (OUT - Free Report) reported fourth-quarter 2019 adjusted funds from operations (FFO) per share of 73 cents, surpassing the Zacks Consensus Estimate of 72 cents by 1.4%. Moreover, the reported figure improved from the prior-year quarter tally of 70 cents.
Revenues came in at $488.1 million for the fourth quarter, beating the Zacks Consensus Estimate of $482.6 million by 1.1%. The revenue figure also climbed 7.9% year over year.
Results highlight higher average revenue per display, increased revenues from digital-billboard conversions and digital transit displays. Also, the adjusted operating income before depreciation and amortization (adjusted OIBDA) was up 5.5% year over year. Nonetheless, mounting transit franchise cost and billboard lease expenses hurt results to some extent.
For full-year 2019, the company reported adjusted FFO per share of $2.33, marking an increase of 8.4% year on year. Full-year revenues came in at $1.8 billion, reflecting an 11% increase from the prior year.
Quarter in Detail
Billboard revenues came in at $321.1 million, indicating year-over-year increase of 6.3%. This upside resulted from higher average revenue per display, which is referred as yield, and increased revenues from digital-billboard conversions.
Transit and other revenues of $167 million were up 11.1%, year on year. Growth in revenues from digital transit displays and improvement in yield resulted in this upswing.
However, operating expenses of $255.9 million flared up 8.7% year over year. This upsurge mainly resulted from elevated transit franchise expenses and higher billboard lease expense.
Nevertheless, operating income improved 7.3% to $98 million in the reported quarter on solid revenues.
Balance Sheet
Net cash flow, resulting from operating activities for the year ended Dec 31, 2019, came in at $276.9 million, up 29.2% year on year. Results primarily reflect the impact of higher net income. However, this was partly offset by higher pre-paid equipment deployment costs associated with its New York Metropolitan Transportation Authority transit franchise.
As of Dec 31, 2019, OUTFRONT Media enjoyed a solid liquidity position, which comprised unrestricted cash of $59.1 million and $498.4 million of availability under its $500-million revolving credit facility, net of $1.6 million of issued letters of credit.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
Prologis, Inc. (PLD - Free Report) currently carries a Zacks Rank of 2. The company’s FFO per share estimate for 2020 has been revised 2.5% upward to $3.72 in a month’s time. The stock has rallied 29.1% in 12 months’ time.
Highwoods Properties, Inc (HIW - Free Report) Zacks Consensus Estimate for the current-year FFO per share has moved upward to $3.63 over the past month. Shares of this Zacks #2 Ranked company have gained 8.3% over the past year.
Piedmont Office Realty Trust, Inc. (PDM - Free Report) also carries a Zacks Rank of 2, currently. The company’s ongoing-year FFO per share estimate moved upwards to $1.96 in a month’s time. The stock has rallied 12.4% in the past year.
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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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OUTFRONT Media (OUT) Q4 FFO and Revenues Beat Estimates
OUTFRONT Media (OUT - Free Report) reported fourth-quarter 2019 adjusted funds from operations (FFO) per share of 73 cents, surpassing the Zacks Consensus Estimate of 72 cents by 1.4%. Moreover, the reported figure improved from the prior-year quarter tally of 70 cents.
Revenues came in at $488.1 million for the fourth quarter, beating the Zacks Consensus Estimate of $482.6 million by 1.1%. The revenue figure also climbed 7.9% year over year.
Results highlight higher average revenue per display, increased revenues from digital-billboard conversions and digital transit displays. Also, the adjusted operating income before depreciation and amortization (adjusted OIBDA) was up 5.5% year over year. Nonetheless, mounting transit franchise cost and billboard lease expenses hurt results to some extent.
For full-year 2019, the company reported adjusted FFO per share of $2.33, marking an increase of 8.4% year on year. Full-year revenues came in at $1.8 billion, reflecting an 11% increase from the prior year.
Quarter in Detail
Billboard revenues came in at $321.1 million, indicating year-over-year increase of 6.3%. This upside resulted from higher average revenue per display, which is referred as yield, and increased revenues from digital-billboard conversions.
Transit and other revenues of $167 million were up 11.1%, year on year. Growth in revenues from digital transit displays and improvement in yield resulted in this upswing.
However, operating expenses of $255.9 million flared up 8.7% year over year. This upsurge mainly resulted from elevated transit franchise expenses and higher billboard lease expense.
Nevertheless, operating income improved 7.3% to $98 million in the reported quarter on solid revenues.
Balance Sheet
Net cash flow, resulting from operating activities for the year ended Dec 31, 2019, came in at $276.9 million, up 29.2% year on year. Results primarily reflect the impact of higher net income. However, this was partly offset by higher pre-paid equipment deployment costs associated with its New York Metropolitan Transportation Authority transit franchise.
As of Dec 31, 2019, OUTFRONT Media enjoyed a solid liquidity position, which comprised unrestricted cash of $59.1 million and $498.4 million of availability under its $500-million revolving credit facility, net of $1.6 million of issued letters of credit.
OUTFRONT Media Inc. Price, Consensus and EPS Surprise
OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote
Currently, OUTFRONT Media carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Prologis, Inc. (PLD - Free Report) currently carries a Zacks Rank of 2. The company’s FFO per share estimate for 2020 has been revised 2.5% upward to $3.72 in a month’s time. The stock has rallied 29.1% in 12 months’ time.
Highwoods Properties, Inc (HIW - Free Report) Zacks Consensus Estimate for the current-year FFO per share has moved upward to $3.63 over the past month. Shares of this Zacks #2 Ranked company have gained 8.3% over the past year.
Piedmont Office Realty Trust, Inc. (PDM - Free Report) also carries a Zacks Rank of 2, currently. The company’s ongoing-year FFO per share estimate moved upwards to $1.96 in a month’s time. The stock has rallied 12.4% in the past year.
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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>