Why Outfront Media stock price soared today
stock Outfront Media (outside 17.26%) The outdoor advertising company surged today after reporting solid results in its fourth-quarter earnings report.
Outfront overcame headwinds, including the Hollywood writers’ and actors’ strike, and weakness in the transit advertising market, sending shares up 17.4% as of 3:08 PM ET on Thursday.
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Outfront stays up to date.
Outfront Media’s overall revenue growth increased slightly by 1.3% to $501.2 million, but that was better than estimates of $495.9 million.
Growth was driven by increased average revenue per display, with billboard revenue up 2.6% in the period. However, this was offset by a 4% decline in transit and other categories due to lower prices. The company took an impairment charge on its transit business earlier this year, indicating the value of those assets was lower than previously estimated.
Bottom line, adjusted operating earnings before depreciation and amortization (OIBDA) fell 1.3% to $151.7 million, but investors still seemed satisfied with that level of profitability. Earnings per share improved from $0.34 to $0.35, but this was a penny short of estimates.
Outfront is structured as a real estate investment trust (REIT) and is generally judged to be an adjusted fund of funds from operations. This figure improved to $108.1 million from $96.1 million the previous year.
CEO Jeremy Mahle was also optimistic about 2024, saying, “Although it is still early in 2024, our business is accelerating and we expect OUTFRONT and the entire outdoor industry to benefit from a strong media market this year.” “
Can Outfront continue to profit?
Outfront did not provide guidance for 2024, but trends in the advertising industry appear to favor the company, as digital advertisers are seeing accelerating revenue growth after a lull in 2022 and 2023. Meanwhile, trends like returning to work also favor the Outfront.
The stock’s main attraction for investors is likely its dividend. The dividend yields 8.3% after the stock hit today. Based on the latest results and management commentary, the dividend is well funded and could go higher.
