Americold Realty Trust Reports Q1 Earnings Beat, Revenue Decline By Stuffsearth.com

ATLANTA – Americold Realty Trust , Inc. (NYSE: NYSE:), a global leader in temperature-controlled logistics, has reported its financial and operating results for the first quarter ended March 31, 2024.

The company announced a slight beat on earnings per share (EPS) for the quarter, with a reported EPS of $0.03, surpassing the analyst consensus of $0.02. However, revenue for the quarter was reported at $665 million, falling short of the analyst estimate of $671.25 million.

The company’s first-quarter performance showcased a year-over-year (YoY) increase in adjusted funds from operations (AFFO) per share of over 28%, driven primarily by its Global Warehouse same store pool, which generated a net operating income (NOI) growth of 10.1% on a constant currency basis.

The improved Services Margins, reaching a record first quarter margin of 10.7% on a constant currency basis, contributed significantly to these results. George Chappelle, CEO of Americold Realty Trust, attributed the strong performance to the company’s focus on core priorities, including Customer Service, Labor Management, Pricing, and Development.

Despite the positive EPS outcome, the company experienced a 1.7% decrease in total revenue compared to the first quarter of 2023, which stood at $676.5 million. The reduction in revenue was primarily due to changes in the Transportation and Third-party managed segments, partially offset by growth within the Global Warehouse segment.

Looking ahead, Americold has raised its annual guidance, projecting warehouse segment same store revenue growth (constant currency) of 2.5% to 5.5% and warehouse segment same store NOI growth (constant currency) to be 700 to 750 basis points higher than associated revenue.

This updated outlook reflects the company’s confidence in its operational strategies and ongoing investments, including development projects in Kansas City, Missouri, and Dubai, and a new expansion project in Sydney, Australia.

CEO George Chappelle expressed optimism about the company’s trajectory, stating, “Our significant investments in our ERP infrastructure are showing early positive returns, resulting in improved revenue recognition and better variable cost management, and are delivering sustainable returns in line with our previously disclosed expectations.”

As the company did not provide information on stock market movement following the earnings release, the article does not speculate on investor reactions based on stock performance. Instead, it focuses on the company’s financial results and forward-looking statements provided by management.

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