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Lamar Advertising (LAMR) Q4 AFFO Tops Estimates, Revenues Up
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Lamar Advertising Company (LAMR - Free Report) reported fourth-quarter 2018 adjusted funds from operations (AFFO) of $1.48 per share, comfortably surpassing the Zacks Consensus Estimate of $1.41. This also marks a 7.2% increase from the year-ago tally of $1.38 per share.
Robust top-line growth supported the company’s performance in the quarter. Further, higher operating income and free cash flow indicates strength in operating performance.
Net revenues for the fourth quarter climbed 7.4% from the prior-year tally to $427.9 million. Moreover, the revenue figure outpaced the Zacks Consensus Estimate of $420.6 million.
For full-year 2018, adjusted FFO per share came in at $5.50, surpassing the Zacks Consensus Estimate of $5.42. The figure also improved 8.9% year over year. Revenues for full-year 2018 improved 5.6% year over year to $1.63 billion. However, the reported figure missed the Zacks Consensus Estimate of $1.62 billion.
Quarter in Detail
Operating income increased to $130.6 million from $120 million recorded in the year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9.5%, year over year, to $195.3 million. Additionally, free cash flow of $126 million in the Dec-end quarter was up 12.2% year over year.
At the end of fourth-quarter 2018, Lamar had total liquidity of $178.3 million, of which $156.8 million was available under its revolving senior credit facility, and $21.5 million in cash and cash equivalents.
However, on Jan 17, 2019, borrowing capacity of the credit facility of the company’s wholly owned subsidiary — Lamar Media — was increased by an additional $100 million in aggregate principal amount.
Guidance
Lamar has provided its projection of 2019 AFFO per share to $5.67-$5.83. The Zacks Consensus Estimate for the same is currently pegged at $5.91.
Our Take
With an impressive national footprint and being leading provider of logo signs in the United States, Lamar continues to strengthen its position in strategic markets through accretive acquisitions. In the fourth quarter too, the company acquired billboard operations of Fairway Outdoor Advertising from GTCR, LLC, for $418.5 million.
Through this buyout, it added more than 8,500 high-quality billboards, including more than 135 digital displays. Integration of the assets acquired is anticipated to drive sales and AFFO growth in 2019.
Lamar Advertising Company Price, Consensus and EPS Surprise
Ventas, Inc. (VTR - Free Report) reported fourth-quarter 2018 normalized FFO of 96 cents, beating the Zacks Consensus Estimate of 95 cents. However, the figure came in lower than the year-ago tally of $1.03.
Host Hotels & Resorts, Inc. (HST - Free Report) recorded fourth-quarter 2018 adjusted FFO of 43 cents per share, which outpaced the Zacks Consensus Estimate of 41 cents. Adjusted FFO per share also increased from the year-ago tally of 42 cents.
Welltower Inc. (WELL - Free Report) posted normalized FFO per share of $1.01 for fourth-quarter 2018, which missed the Zacks Consensus Estimate of $1.03. Moreover, the figure compared unfavorably with the year-ago tally of $1.02.
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.
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Lamar Advertising (LAMR) Q4 AFFO Tops Estimates, Revenues Up
Lamar Advertising Company (LAMR - Free Report) reported fourth-quarter 2018 adjusted funds from operations (AFFO) of $1.48 per share, comfortably surpassing the Zacks Consensus Estimate of $1.41. This also marks a 7.2% increase from the year-ago tally of $1.38 per share.
Robust top-line growth supported the company’s performance in the quarter. Further, higher operating income and free cash flow indicates strength in operating performance.
Net revenues for the fourth quarter climbed 7.4% from the prior-year tally to $427.9 million. Moreover, the revenue figure outpaced the Zacks Consensus Estimate of $420.6 million.
For full-year 2018, adjusted FFO per share came in at $5.50, surpassing the Zacks Consensus Estimate of $5.42. The figure also improved 8.9% year over year. Revenues for full-year 2018 improved 5.6% year over year to $1.63 billion. However, the reported figure missed the Zacks Consensus Estimate of $1.62 billion.
Quarter in Detail
Operating income increased to $130.6 million from $120 million recorded in the year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9.5%, year over year, to $195.3 million. Additionally, free cash flow of $126 million in the Dec-end quarter was up 12.2% year over year.
At the end of fourth-quarter 2018, Lamar had total liquidity of $178.3 million, of which $156.8 million was available under its revolving senior credit facility, and $21.5 million in cash and cash equivalents.
However, on Jan 17, 2019, borrowing capacity of the credit facility of the company’s wholly owned subsidiary — Lamar Media — was increased by an additional $100 million in aggregate principal amount.
Guidance
Lamar has provided its projection of 2019 AFFO per share to $5.67-$5.83. The Zacks Consensus Estimate for the same is currently pegged at $5.91.
Our Take
With an impressive national footprint and being leading provider of logo signs in the United States, Lamar continues to strengthen its position in strategic markets through accretive acquisitions. In the fourth quarter too, the company acquired billboard operations of Fairway Outdoor Advertising from GTCR, LLC, for $418.5 million.
Through this buyout, it added more than 8,500 high-quality billboards, including more than 135 digital displays. Integration of the assets acquired is anticipated to drive sales and AFFO growth in 2019.
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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Ventas, Inc. (VTR - Free Report) reported fourth-quarter 2018 normalized FFO of 96 cents, beating the Zacks Consensus Estimate of 95 cents. However, the figure came in lower than the year-ago tally of $1.03.
Host Hotels & Resorts, Inc. (HST - Free Report) recorded fourth-quarter 2018 adjusted FFO of 43 cents per share, which outpaced the Zacks Consensus Estimate of 41 cents. Adjusted FFO per share also increased from the year-ago tally of 42 cents.
Welltower Inc. (WELL - Free Report) posted normalized FFO per share of $1.01 for fourth-quarter 2018, which missed the Zacks Consensus Estimate of $1.03. Moreover, the figure compared unfavorably with the year-ago tally of $1.02.
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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>