Shares of Outfront Media (NYSE:OUT) jumped on Tuesday after the billboard advertising company reported its third-quarter results. Outfront beat analyst estimates for both revenue and earnings, logging solid growth in revenue and adjusted funds from operations. As of 1 p.m. EST, the stock was up about 12.8%.
Outfront reported third-quarter revenue of $414.2 million, up 5.6% year over year and $9.3 million higher than the average analyst estimate. Billboard revenue grew by 6.7% to $290.6 million, while transit and other revenue jumped 3% to $123.6 million.
Earnings per share came in at $0.33, down from $0.36 in the prior-year period but $0.04 better than analysts were expecting. Adjusted funds from operations was $86.4 million, or $0.61 per share, up 10.5% year over year.
CEO Jeremy Male expects the company's momentum to carry over into the fourth quarter: "We again saw an impressive increase in local advertising revenues and a return to growth in national, while our digital transformation continues with revenues up double-digits. We feel increasingly positive about our strategic position and we are looking forward to a robust fourth quarter."
Shares of Outfront are still down more than 10% this year even after Tuesday's rally, with a string of mixed quarterly reports earlier this year knocking down the stock. With revenue growth picking up, Outfront stock may be able to make up some of that lost ground in the coming quarters.