OUTFRONT Media Q1 AFFO & Revenues Miss, Interest Expenses Dip

OUTFRONT Media Inc. OUT reported first-quarter 2025 adjusted funds from operations (AFFO) per share of 14 cents, missing the Zacks Consensus Estimate of 15 cents. The reported figure remained unchanged from the prior-year quarter.Results reflected a decline in billboard revenues in the quarter, which affected year-over-year top-line growth. However, a rise in transit revenues, and lower interest expenses and operating expenses supported the results to some extent.Quarterly revenues came in at $390.7 million, missing the Zacks Consensus Estimate by 1.5%. The top line decreased 4.4% year over year.Per Nick Brien, Interim CEO of OUTFRONT Media, "Although recent macroeconomic events have further increased the uncertainty in the market, we remain confident in the health and strength of our business in both the short and long term.”OUT’s First Quarter in DetailDuring the reported quarter, billboard revenues were $310.7 million, reflecting a year-over-year decline of 1%. The fall was due to the impact of lost billboards and lower proceeds from condemnations, partly offset by higher average revenue per display (yield), including the impact of programmatic platforms on digital billboard revenues. Our estimate was pegged at $305.8 million.The company’s transit revenues of $77.7 million increased 2.6% from the year-ago quarter. The growth was primarily due to an increase in average revenue per display (yield), partially offset by the impact of new and lost transit franchise contracts in the period. Our estimate was pegged at $82.8 million.OUTFRONT Media’s operating income totaled $13.9 million in the first quarter compared with an operating income of $14 million in the year-ago quarter.Operating expenses were $221.3 million, which decreased 7.3% year over year. The fall was due to the impact of lower variable property lease expenses, the impact of the Outdoor Systems Americas ULC and its subsidiaries transaction, and lost billboards.Net interest expenses of $36 million decreased 13% from $41.4 million in the prior-year period. The fall was mainly due to lower average debt balance and lower interest rates. The weighted average cost of debt, as of March 31, 2025, 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 quarter ended March 31, 2025, was $33.6 million, which increased from $30.6 million in the prior-year period.As of March 31, 2025, OUTFRONT Media’s liquidity position comprised unrestricted cash of $30.5 million and $494.8 million of availability under its $500 million revolving credit facility, net of $5.2 million of issued letters of credit and $100 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 first-quarter earnings release, OUTFRONT Media announced its common stock quarterly cash dividend of 30 cents per share. The dividend will be paid out on June 30 to its shareholders of record as of June 6, 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. OUTFRONT Media Inc. Price, Consensus and EPS Surprise OUTFRONT Media Inc. price-consensus-eps-surprise-chart | OUTFRONT Media Inc. Quote Performance of Other REITsPublic Storage PSA reported first-quarter 2025 core FFO per share of $4.12, which surpassed the Zacks Consensus Estimate of $4.06. Also, the figure increased 2.2% year over year from $4.03. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Results were backed by top-line growth, with the company experiencing higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the positive. PSA also reaffirmed its 2025 guidance.Vornado Realty Trust’s VNO first-quarter 2025 FFO plus assumed conversions, on an adjusted basis, were 63 cents per share, which beat the Zacks Consensus Estimate of 52 cents. Moreover, the figure jumped 14.5% year over year.The results displayed growth in total same-store net operating income year over year. Also, VNO witnessed decent leasing activity during the quarter.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 Vornado Realty Trust (VNO): 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