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Lamar Advertising (LAMR) Q2 Revenues Beat Estimates, FFO Up
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Lamar Advertising Company (LAMR - Free Report) reported second-quarter 2018 adjusted funds from operations (FFO) of $1.52 per share, marking a 9.4% increase from the year-ago tally of $1.39 per share.
Results were primarily driven by growth in revenues. Same-unit digital revenues increased 6.3% during the quarter.
Net revenues for the quarter climbed 5.7% from the prior-year quarter to $419.8 million. Moreover, the revenue figure outpaced the Zacks Consensus Estimate of $417 million.
Quarter in Detail
Operating income increased to $135.7 million from $128.2 million recorded in the prior-year period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7.6%, year over year, to $195.8 million. Additionally, free cash flow of $132.9 million in the June-end quarter was up 11.5% year over year.
At the end of second-quarter 2018, Lamar had total liquidity of $338.6 million, of which $319 million was available under its revolving senior credit facility, and $19.6 million in cash and cash equivalents.
Guidance
Lamar Advertising revised its projection of adjusted FFO per share to $5.30-$5.40, up from the earlier estimate of $5.15-$5.30. The Zacks Consensus Estimate for the same is currently pegged at $5.40.
Our Take
Lamar’s impressive national presence, tenants from diverse industries and valuable permits augur well for its growth. Moreover, the company’s strategy to focus on portfolio upgradation and expansion is expected to drive long-term profitability.
Nonetheless, the prevalent lackluster national advertising market scenario remains a concern. Further, high investment expenditures for acquisitions are likely to take a toll on Lamar’s balance sheet. Rate hike remains another concern.
Lamar Advertising Company Price, Consensus and EPS Surprise
Cousins Properties Incorporated (CUZ - Free Report) reported second-quarter 2018 FFO per share of 15 cents, in line with the Zacks Consensus Estimate. The reported figure came in lower than the prior-year quarter tally of 16 cents.
Mack-Cali Realty Corp’s core FFO per share of 45 cents came in lower than the year-ago figure of 60 cents. However, it surpassed the Zacks Consensus Estimate by a cent.
Highwoods Properties Inc. (HIW - Free Report) reported second-quarter 2018 FFO of 87 cents per share, marginally beating the Zacks Consensus Estimate. However, the figure compares unfavorably with the year-ago tally of 90 cents.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Lamar Advertising (LAMR) Q2 Revenues Beat Estimates, FFO Up
Lamar Advertising Company (LAMR - Free Report) reported second-quarter 2018 adjusted funds from operations (FFO) of $1.52 per share, marking a 9.4% increase from the year-ago tally of $1.39 per share.
Results were primarily driven by growth in revenues. Same-unit digital revenues increased 6.3% during the quarter.
Net revenues for the quarter climbed 5.7% from the prior-year quarter to $419.8 million. Moreover, the revenue figure outpaced the Zacks Consensus Estimate of $417 million.
Quarter in Detail
Operating income increased to $135.7 million from $128.2 million recorded in the prior-year period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7.6%, year over year, to $195.8 million. Additionally, free cash flow of $132.9 million in the June-end quarter was up 11.5% year over year.
At the end of second-quarter 2018, Lamar had total liquidity of $338.6 million, of which $319 million was available under its revolving senior credit facility, and $19.6 million in cash and cash equivalents.
Guidance
Lamar Advertising revised its projection of adjusted FFO per share to $5.30-$5.40, up from the earlier estimate of $5.15-$5.30. The Zacks Consensus Estimate for the same is currently pegged at $5.40.
Our Take
Lamar’s impressive national presence, tenants from diverse industries and valuable permits augur well for its growth. Moreover, the company’s strategy to focus on portfolio upgradation and expansion is expected to drive long-term profitability.
Nonetheless, the prevalent lackluster national advertising market scenario remains a concern. Further, high investment expenditures for acquisitions are likely to take a toll on Lamar’s balance sheet. Rate hike remains another concern.
Lamar Advertising Company Price, Consensus and EPS Surprise
Lamar Advertising Company Price, Consensus and EPS Surprise | Lamar Advertising Company Quote
Lamar currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Stocks in the Same Space
Cousins Properties Incorporated (CUZ - Free Report) reported second-quarter 2018 FFO per share of 15 cents, in line with the Zacks Consensus Estimate. The reported figure came in lower than the prior-year quarter tally of 16 cents.
Mack-Cali Realty Corp’s core FFO per share of 45 cents came in lower than the year-ago figure of 60 cents. However, it surpassed the Zacks Consensus Estimate by a cent.
Highwoods Properties Inc. (HIW - Free Report) reported second-quarter 2018 FFO of 87 cents per share, marginally beating the Zacks Consensus Estimate. However, the figure compares unfavorably with the year-ago tally of 90 cents.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>