Americold Earnings: Rebound in Services Drives Good Results; Maintaining Our $31.50 Fair Value

No-moat-rated Americold Realty reported a good set of first-quarter numbers on the back of a strong recovery in the services segment, which had been under considerable pressure since the pandemic. The firm reported adjusted funds from operations of $0.37 per share, 28% higher than the $0.29 in adjusted FFO during the first quarter of 2023. Core EBITDA, which removes the impact of higher interest expenses and is less prone to quarterly fluctuations, was reported at $155.8 million, up 17% compared with $133.1 million in core EBITDA in the year-ago quarter. The shares were up about 5% midday on May 10 in response to the results. We do not plan to change our $31.50 fair value estimate as we incorporate the first-quarter results.