Outfront Media (OUT) stock soared 5.14% during Wednesday's pre-market trading session, reflecting investors' enthusiasm after the company reported strong fourth-quarter 2024 earnings results.
The out-of-home advertising company posted a 3.9% increase in organic revenue growth for Q4, driven by a 2% rise in billboard revenue and an impressive 9% jump in transit revenue. Digital billboard revenue also grew by 4.7%, demonstrating the company's successful transition towards digital advertising formats.
Outfront Media's profitability also improved substantially, with adjusted OIBDA (operating income before depreciation and amortization) climbing 8.5% year-over-year to $155 million in the fourth quarter. The company's billboard adjusted OIBDA margin expanded by 80 basis points to 40.3%, reflecting operational efficiencies and cost control measures.
Analysts praised Outfront Media's performance, with the company beating Wall Street's consensus EPS estimate of $0.38 by reporting adjusted earnings of $0.39 per share. The company's full-year 2024 AFFO (adjusted funds from operations) grew by 11.5%, and Outfront Media reduced its net leverage ratio from 5.4x to 4.7x by year-end, strengthening its financial position.