Outfront Media's (OUT) Q2 FFO & Revenues Beat Estimates
Outfront Media Inc. OUT reported second-quarter 2016 adjusted funds from operations (“FFO”) per share of 59 cents, beating the Zacks Consensus Estimate of 55 cents. Second-quarter 2015 adjusted FFO had been 52 cents.
Revenues for the quarter were $385.3 million, outpacing the Zacks Consensus Estimate of $382 million. The prior-year quarter revenue figure was $384.7 million.
Quarter in Detail
Operating income during the reported quarter was $59 million, up from $54.6 million recorded in the prior-year quarter. The company’s total expenses were down 1.2% year over year to $326.3 million.
Adjusted operating income before depreciation and amortization rose 3.3% year over year to $123 million. Net cash flow resulting from operating activities for the six months ending Jun 30, 2016 came in at $104.7 million, up from $74.1 million in the prior-year period.
At the quarter end, Outfront’s liquidity included $393.8 million available under its revolving credit facility and $61 million in cash.
Segmental Performance
During the quarter, reported revenues at U.S. media came in at $356.5 million, up 5.8% year over year.
Revenues at the Other segment were $28.8 million, down 39.7% year over year.
Excluding stock-based compensation, corporate costs during the quarter were $9.1 million, down by $0.3 million from the prior-year quarter.
Our Take
Outfront’s competent products and consistent investments in products, data, and technology bode well for the long term.
OUTFRONT MEDIA Price, Consensus and EPS Surprise
OUTFRONT MEDIA Price, Consensus and EPS Surprise | OUTFRONT MEDIA Quote
Outfront currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the REIT space include Apple Hospitality REIT, Inc. APLE, Communications Sales & Leasing, Inc. CSAL and CoreSite Realty Corporation COR. All these stocks hold a Zacks Rank #2 (Buy).
Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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