OUTFRONT Media (NYSE:OUT) Posts Earnings Results, Beats Expectations By $0.30 EPS

Key Points

• OUTFRONT Media beat quarterly expectations: EPS came in at $0.68 versus the $0.38 consensus, while revenue rose 13.5% year over year to $522.5 million.
• Growth was led by transit and digital advertising: Transit revenue increased 32%, digital revenue grew more than 23%, and adjusted OIBDA and AFFO rose 29% and 45%, respectively.
• Management raised its outlook: Third-quarter revenue is expected to grow in the high-single digits, and full-year reported AFFO growth is now projected in the low-20% range, though higher SG&A spending could pressure margins.

OUTFRONT Media (NYSE:OUT - Get Free Report) announced its quarterly earnings results on Wednesday. The financial services provider reported $0.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.38 by $0.30, Zacks reports. OUTFRONT Media had a net margin of 9.98% and a return on equity of 30.36%. The business had revenue of $522.50 million during the quarter, compared to the consensus estimate of $509.61 million. During the same quarter last year, the firm earned $0.51 EPS. The business's revenue was up 13.5% compared to the same quarter last year.

Here are the key takeaways from OUTFRONT Media's conference call:

• Second-quarter results exceeded expectations: revenue rose 14%, adjusted OIBDA increased 29% to $160 million, and AFFO grew 45% to $121 million, supported by strong transit and billboard demand.
• Transit revenue surged 32%, led by a 48% increase at New York’s MTA, while digital revenue grew more than 23% and programmatic and automated digital sales rose nearly 50%. The FIFA World Cup generated over $50 million in total revenue, including about $35 million in the quarter.
• Management expects third-quarter revenue to increase in the high-single digits, with transit up approximately 20% and billboard revenue growing at a mid-single-digit rate. Full-year reported AFFO growth is now expected in the low-20% range.
• Outfront expects SG&A growth to outpace revenue growth for the rest of 2026 as it invests in digital sales, data analytics, technology, training, and personnel, potentially pressuring near-term margins.
• The company will continue recognizing the MTA’s $161 million minimum annual guarantee as transit franchise expense on a straight-line basis, or roughly $40 million per quarter, rather than shifting costs into a fourth-quarter revenue-share structure.

OUTFRONT Media Stock Up 0.4%

Shares of NYSE OUT traded up $0.11 during mid-day trading on Wednesday, hitting $32.09. The company had a trading volume of 2,653,004 shares, compared to its average volume of 1,555,071. The company has a market capitalization of $5.65 billion, a PE ratio of 30.57, a price-to-earnings-growth ratio of 1.51 and a beta of 1.49. The company has a debt-to-equity ratio of 3.90, a current ratio of 0.82 and a quick ratio of 0.82. OUTFRONT Media has a 1-year low of $16.64 and a 1-year high of $34.96. The business's 50-day simple moving average is $32.10 and its 200 day simple moving average is $29.56.

OUTFRONT Media Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Friday, June 5th. OUTFRONT Media's dividend payout ratio (DPR) is presently 114.29%.

Wall Street Analysts Forecast Growth

OUT has been the subject of a number of recent analyst reports. TD Cowen reissued a "buy" rating and set a $38.00 price objective (up from $32.00) on shares of OUTFRONT Media in a research report on Tuesday, May 12th. Barrington Research set a $38.00 target price on shares of OUTFRONT Media in a research note on Tuesday, May 12th. Morgan Stanley set a $37.00 price target on shares of OUTFRONT Media in a research report on Friday, May 8th. JPMorgan Chase & Co. reissued an "overweight" rating and issued a $38.00 price target on shares of OUTFRONT Media in a research note on Wednesday, July 22nd. Finally, Wall Street Zen lowered shares of OUTFRONT Media from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 26th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, OUTFRONT Media has an average rating of "Moderate Buy" and an average target price of $32.57.

Insider Buying and Selling at OUTFRONT Media

In other OUTFRONT Media news, EVP Richard H. Sauer sold 5,000 shares of the company's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $32.08, for a total transaction of $160,400.00. Following the sale, the executive vice president owned 56,947 shares in the company, valued at $1,826,859.76. This represents a 8.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP James Michael Norton purchased 4,130 shares of OUTFRONT Media stock in a transaction on Thursday, June 11th. The stock was bought at an average cost of $30.81 per share, for a total transaction of $127,245.30. Following the transaction, the executive vice president directly owned 4,130 shares in the company, valued at $127,245.30. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold a total of 20,000 shares of company stock valued at $629,600 over the last three months. 0.45% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Advisory Services Network LLC acquired a new stake in shares of OUTFRONT Media in the 3rd quarter valued at $29,000. Kestra Advisory Services LLC acquired a new position in shares of OUTFRONT Media during the fourth quarter worth $71,000. State of Wyoming grew its stake in shares of OUTFRONT Media by 155.5% during the second quarter. State of Wyoming now owns 7,973 shares of the financial services provider's stock worth $130,000 after purchasing an additional 4,853 shares in the last quarter. Osaic Holdings Inc. increased its holdings in OUTFRONT Media by 45.4% in the second quarter. Osaic Holdings Inc. now owns 9,126 shares of the financial services provider's stock valued at $149,000 after buying an additional 2,851 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV purchased a new position in OUTFRONT Media in the fourth quarter valued at $220,000.

About OUTFRONT Media

OUTFRONT Media Inc is a leading out-of-home (OOH) advertising company offering a broad range of billboard, transit and digital display solutions across major urban markets in the United States and Canada. Its portfolio encompasses traditional static billboards, high-resolution digital signage, transit media on buses, trains and taxis, as well as street furniture placements such as bus shelters, kiosks and urban panels. The company partners with brand marketers to deliver high-impact campaigns that engage consumers outside the home environment.

Through an extensive network of assets in key metropolitan areas, OUTFRONT provides advertisers with premium visibility along highways, city streets and transit corridors.

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