Outfront Media (OUT) shares are set for a steep decline, plunging 28.53% in pre-market trading on Friday, following the release of disappointing first-quarter earnings results. The outdoor advertising company's financial performance fell short of analyst expectations, raising concerns about its near-term prospects.
For the quarter ended March 31, Outfront Media reported a loss of $0.14 per diluted share, which was wider than the $0.07 loss per share analysts had predicted. While the loss narrowed from $0.18 per share in the same quarter last year, it still failed to meet market expectations. Revenue for the quarter also disappointed, coming in at $390.7 million, a 4.4% decrease from the previous year and below the anticipated $396.2 million.
The company's adjusted funds from operations (FFO) for the quarter stood at $23.9 million. This metric, which is closely watched in the real estate investment trust (REIT) sector, appears to have fallen short of investor expectations, contributing to the sharp sell-off. The significant pre-market drop suggests that investors are reassessing Outfront Media's growth prospects and financial health in light of these results. As the market opens, traders will be watching closely to see if the stock can recover any ground or if the negative sentiment persists throughout the trading session.
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