Preview: Outfront Media's Earnings

Outfront Media OUT is set to give its latest quarterly earnings report on Tuesday, 2024-11-12. Here's what investors need to know before the announcement.

Analysts estimate that Outfront Media will report an earnings per share (EPS) of $0.18.

Anticipation surrounds Outfront Media's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

Last quarter the company missed EPS by $0.04, which was followed by a 6.32% increase in the share price the next day.

Here's a look at Outfront Media's past performance and the resulting price change:

Performance of Outfront Media Shares

Shares of Outfront Media were trading at $17.67 as of November 08. Over the last 52-week period, shares are up 45.07%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Views on Outfront Media

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Outfront Media.

The consensus rating for Outfront Media is Outperform, derived from 2 analyst ratings. An average one-year price target of $20.0 implies a potential 13.19% upside.

Analyzing Analyst Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Four Corners Prop, EPR Props and Safehold, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Four Corners Prop, with an average 1-year price target of $29.67, suggesting a potential 67.91% upside.
• EPR Props is maintaining an Underperform status according to analysts, with an average 1-year price target of $48.6, indicating a potential 175.04% upside.
• The prevailing sentiment among analysts is an Outperform trajectory for Safehold, with an average 1-year price target of $32.17, implying a potential 82.06% upside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for Four Corners Prop, EPR Props and Safehold, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Outfront Media ranks top in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity.

About Outfront Media

Outfront Media Inc is a real estate investment trust involved in the ownership of advertising space on its portfolio of billboards and transit displays. The Company generates revenue in the form of rental income by allowing other companies to advertise on its properties and structures under short-term contracts. Outfront Media segments its operations into the United States and International units. Although it also owns assets in Canada and Latin America, the company derives the vast majority of its revenue from billboard advertising agreements in the U.S. Roughly half of the U.S. division's revenue comes from its displays in the New York City and Los Angeles markets. Outfront Media's major customers include entities within the retail, television, healthcare, and entertainment industries.

Unraveling the Financial Story of Outfront Media

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Outfront Media displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 1.81%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.

Net Margin: Outfront Media's net margin is impressive, surpassing industry averages. With a net margin of 36.58%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Outfront Media's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 29.37% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Outfront Media's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.24% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Outfront Media's debt-to-equity ratio stands notably higher than the industry average, reaching 6.13. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Outfront Media visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.