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Lamar (LAMR) Up 9.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Lamar Advertising (LAMR - Free Report) . Shares have added about 9.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lamar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Lamar Q4 FFO & Revenues Top Estimates, Costs Decline
Lamar reported fourth-quarter 2020 adjusted FFO per share of $1.71, outpacing the Zacks Consensus Estimate of $1.50. Moreover, the figure is up from the $1.64 reported in the year-ago period.
Results reflect better-than-expected revenue numbers for the quarter. Also, the company benefited from a fall in operating expenses.
Particularly, quarterly net revenues came in at $428.5 million, surpassing the consensus mark of $416.4 million. However, on a year-over-year basis, net revenues for the quarter declined 7.4%.
According to the company’s chief executive Sean Reilly, “We concluded 2020 with a strong fourth quarter, aided by a recovery in national advertising and a surge in political spending, as well as further good work on the expense side."
Moreover, he pointed that, "We have begun to invest again in our platform, and, with the strongest balance sheet in the industry, we are positioned well to benefit as the advertising market recovers further in 2021.”
For full-year 2020, the company reported adjusted FFO per share of $5.10, down from the prior year’s $5.80. Net revenues declined 10.5% to $1.57 billion from the $1.75 billion reported last year.
Quarter in Detail
Acquisition-adjusted net revenues for the fourth quarter decreased 6.8% year on year to $428.5 million. Also, acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 2.8% to $207.9 million.
Operating income marginally declined to $141.2 million from the year-earlier period’s $141.4 million, while adjusted EBITDA went down 3.6% to $207.9 million. However, free cash flow of $160.1 million increased 18.3% year over year during the December-end quarter.
Operating expenses slid 10.6% from the prior-year quarter to $287.3 million.
Balance Sheet
At the end of 2020, Lamar Advertising had total liquidity of $910.1 million. This comprised $736 million available for borrowing under its revolving senior credit facility, $52.5 million available under the Accounts Receivable Securitization Program, and $121.6 million in cash and cash equivalents.
Outlook
Lamar Advertising projects 2021 adjusted FFO per share at $5.20-$5.50.
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
Currently, Lamar has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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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Lamar (LAMR) Up 9.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Lamar Advertising (LAMR - Free Report) . Shares have added about 9.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lamar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Lamar Q4 FFO & Revenues Top Estimates, Costs Decline
Lamar reported fourth-quarter 2020 adjusted FFO per share of $1.71, outpacing the Zacks Consensus Estimate of $1.50. Moreover, the figure is up from the $1.64 reported in the year-ago period.
Results reflect better-than-expected revenue numbers for the quarter. Also, the company benefited from a fall in operating expenses.
Particularly, quarterly net revenues came in at $428.5 million, surpassing the consensus mark of $416.4 million. However, on a year-over-year basis, net revenues for the quarter declined 7.4%.
According to the company’s chief executive Sean Reilly, “We concluded 2020 with a strong fourth quarter, aided by a recovery in national advertising and a surge in political spending, as well as further good work on the expense side."
Moreover, he pointed that, "We have begun to invest again in our platform, and, with the strongest balance sheet in the industry, we are positioned well to benefit as the advertising market recovers further in 2021.”
For full-year 2020, the company reported adjusted FFO per share of $5.10, down from the prior year’s $5.80. Net revenues declined 10.5% to $1.57 billion from the $1.75 billion reported last year.
Quarter in Detail
Acquisition-adjusted net revenues for the fourth quarter decreased 6.8% year on year to $428.5 million. Also, acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 2.8% to $207.9 million.
Operating income marginally declined to $141.2 million from the year-earlier period’s $141.4 million, while adjusted EBITDA went down 3.6% to $207.9 million. However, free cash flow of $160.1 million increased 18.3% year over year during the December-end quarter.
Operating expenses slid 10.6% from the prior-year quarter to $287.3 million.
Balance Sheet
At the end of 2020, Lamar Advertising had total liquidity of $910.1 million. This comprised $736 million available for borrowing under its revolving senior credit facility, $52.5 million available under the Accounts Receivable Securitization Program, and $121.6 million in cash and cash equivalents.
Outlook
Lamar Advertising projects 2021 adjusted FFO per share at $5.20-$5.50.
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
Currently, Lamar has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.