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Lamar (LAMR) Down 0.9% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Lamar Advertising (LAMR - Free Report) . Shares have lost about 0.9% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Lamar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Lamar Q3 AFFO Tops, Revenues Miss Estimates

Lamar reported third-quarter 2018 AFFO of $1.51 per share, comfortably surpassing the Zacks Consensus Estimate of $1.47. This also marks a 7.9% increase from the year-ago tally of $1.40 per share.

Robust top-line growth supported results. However, operating income declined year over year on account of higher operating expenses.

Net revenues for the third quarter climbed 4.8% from the prior-year tally to $418.5 million. Moreover, the revenue figure outpaced the Zacks Consensus Estimate of $421.4 million.

Quarter in Detail

Operating income decreased to $128.4 million from $131.7 million recorded in the year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5.3%, year over year, to $192.5 million. Additionally, free cash flow of $130.7 million in the Sep-end quarter was up 7% year over year.

At the end of third-quarter 2018, Lamar had total liquidity of $342.6 million, of which $332 million was available under its revolving senior credit facility, and $10.6 million in cash and cash equivalents.

Guidance

Lamar reiterated its projection of AFFO per share to $5.30-$5.40 for 2018.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Lamar has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Lamar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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