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Lamar's (LAMR) Q3 FFO & Revenues Surpass Estimates, Stock Up
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Shares of Lamar Advertising Company (LAMR - Free Report) appreciated 3.9% after the company reported better-than-expected third-quarter results. The quarterly adjusted funds from operations (FFO) per share of $1.32 outpaced the Zacks Consensus Estimate of $1.18. Moreover, net revenues for the quarter came in at $386.1 million, surpassing the Zacks Consensus Estimate of $375.4 million.
Per management, the company witnessed a recovery in advertising revenues backed by “spending from local businesses and election-year political dollars”.
Also, the company’s quarterly results benefited from a fall in operating expenses. Further, the company revised its adjusted FFO guidance upward for the current year on recovery in sales and improved expense management.
However, on a year-over-year basis, net revenues for the quarter declined 15.7%. In addition, the reported FFO figure is lower than the prior-year quarter’s $1.62.
Quarter in Detail
Acquisition-adjusted net revenues for the third quarter decreased 15.5% year on year to $386.1 million. Also, acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 20.1% to $170.7 million.
Operating income slid 25.2% from the prior-year quarter to $105.9 million, while adjusted EBITDA went down 20.7% to $170.7 million. Additionally, free cash flow of $127.2 million dipped 8% year over year in the September-end quarter.
However, operating expenses declined 11.4% from the prior-year quarter to $280.3 million.
Balance Sheet
At the end of third-quarter 2020, Lamar Advertising had total liquidity of $770.8 million. This comprised $666.9 million available for borrowing under its revolving senior credit facility, $35.3 million available under the Accounts Receivable Securitization Program, and $68.6 million in cash and cash equivalents.
Outlook
Lamar Advertising has revised the 2020 guidance. It now projects 2020 adjusted FFO per share at $4.65-$4.85. The company had earlier estimated the ongoing year’s adjusted FFO per share in the $4.16-$4.56 band.
Lamar Advertising Company Price, Consensus and EPS Surprise
OUTFRONT Media (OUT - Free Report) delivered third-quarter 2020 adjusted FFO per share of 19 cents, outpacing the Zacks Consensus Estimate of 12 cents. In the prior-year quarter, the company had reported adjusted FFO per share of 64 cents.
Extra Space Storage, Inc. (EXR - Free Report) reported third-quarter core FFO per share of $1.31, beating the Zacks Consensus Estimate of $1.24. The figure comes in 5.6% higher than the prior-year quarter’s $1.24.
Mack-Cali Realty Corp’s third-quarter 2020 core FFO per share of 30 cents exceeded the Zacks Consensus Estimate of 29 cents. Nonetheless, the figure compared unfavorably with the year-ago quarter’s 38 cents.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Lamar's (LAMR) Q3 FFO & Revenues Surpass Estimates, Stock Up
Shares of Lamar Advertising Company (LAMR - Free Report) appreciated 3.9% after the company reported better-than-expected third-quarter results. The quarterly adjusted funds from operations (FFO) per share of $1.32 outpaced the Zacks Consensus Estimate of $1.18. Moreover, net revenues for the quarter came in at $386.1 million, surpassing the Zacks Consensus Estimate of $375.4 million.
Per management, the company witnessed a recovery in advertising revenues backed by “spending from local businesses and election-year political dollars”.
Also, the company’s quarterly results benefited from a fall in operating expenses. Further, the company revised its adjusted FFO guidance upward for the current year on recovery in sales and improved expense management.
However, on a year-over-year basis, net revenues for the quarter declined 15.7%. In addition, the reported FFO figure is lower than the prior-year quarter’s $1.62.
Quarter in Detail
Acquisition-adjusted net revenues for the third quarter decreased 15.5% year on year to $386.1 million. Also, acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 20.1% to $170.7 million.
Operating income slid 25.2% from the prior-year quarter to $105.9 million, while adjusted EBITDA went down 20.7% to $170.7 million. Additionally, free cash flow of $127.2 million dipped 8% year over year in the September-end quarter.
However, operating expenses declined 11.4% from the prior-year quarter to $280.3 million.
Balance Sheet
At the end of third-quarter 2020, Lamar Advertising had total liquidity of $770.8 million. This comprised $666.9 million available for borrowing under its revolving senior credit facility, $35.3 million available under the Accounts Receivable Securitization Program, and $68.6 million in cash and cash equivalents.
Outlook
Lamar Advertising has revised the 2020 guidance. It now projects 2020 adjusted FFO per share at $4.65-$4.85. The company had earlier estimated the ongoing year’s adjusted FFO per share in the $4.16-$4.56 band.
Lamar Advertising Company Price, Consensus and EPS Surprise
Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote
Lamar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
OUTFRONT Media (OUT - Free Report) delivered third-quarter 2020 adjusted FFO per share of 19 cents, outpacing the Zacks Consensus Estimate of 12 cents. In the prior-year quarter, the company had reported adjusted FFO per share of 64 cents.
Extra Space Storage, Inc. (EXR - Free Report) reported third-quarter core FFO per share of $1.31, beating the Zacks Consensus Estimate of $1.24. The figure comes in 5.6% higher than the prior-year quarter’s $1.24.
Mack-Cali Realty Corp’s third-quarter 2020 core FFO per share of 30 cents exceeded the Zacks Consensus Estimate of 29 cents. Nonetheless, the figure compared unfavorably with the year-ago quarter’s 38 cents.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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