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Shares of Lamar Advertising Company (LAMR - Free Report) gained 1% on the May 2 normal trading session on the NYSE after it reported first-quarter 2024 adjusted funds from operations (AFFO) per share of $1.54, beating the Zacks Consensus Estimate of $1.52. The figure also compared favorably with the prior-year quarter's tally of $1.41.
Results reflect year-over-year growth in the top line. However, higher interest expenses during the quarter acted as a dampener.
Quarterly net revenues of $498.2 million increased 5.7% on a year-over-year basis and beat the consensus mark of $488.8 million.
Per the company’s chief executive, Sean Reilly, “Our first-quarter results exceeded our internal expectations, with particular strength in local sales. In addition, we returned to same-store growth in digital, and the rest of 2024 is shaping up well. As a result, we are raising our guidance for full-year diluted AFFO to a range of $7.75 to $7.90 per share.”
Quarter in Detail
Operating income of $124.6 million climbed 4.9% from the year-ago period’s $118.8 million, while the adjusted EBITDA increased 7.1% to $211.9 million.
Acquisition-adjusted net revenues for the first quarter climbed 5.3% year over year. Also, acquisition-adjusted EBITDA rose 6.5%.
Interest expenses increased 7.3% year over year to $44.5 million during the reported quarter.
The company’s free cash flow of $138.7 million increased 22.4% year over year in the quarter.
Balance Sheet
The cash flow provided by operating activities in the three months ended Mar 31, 2024, was $110.6 million compared with $108.7 million recorded in the year-ago period.
As of Mar 31, 2024, Lamar Advertising had a total liquidity of $634.8 million. This comprised $598.4 million available for borrowing under its revolving senior credit facility and $36.4 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $143 million and $235.7 million under the Accounts Receivable Securitization Program.
Ventas, Inc. (VTR - Free Report) reported first-quarter 2024 normalized funds from operations (FFO) per share of 78 cents, beating the Zacks Consensus Estimate of 74 cents. The reported figure increased 5.4% from the prior-year quarter’s tally.
Results reflect better-than-anticipated revenues. Also, Ventas’ same-store cash net operating income increased year over year on strong performance across the portfolio, except for triple-net leased properties. VTR has also raised its 2024 outlook.
Highwoods Properties Inc. (HIW - Free Report) reported first-quarter 2024 FFO per share of 89 cents, missing the Zacks Consensus Estimate of 90 cents. The figure was also lower than the prior-year quarter’s 98 cents.
Quarterly results reflect a fall in occupancy and higher operating expenses. HIW also revised its outlook for 2024.
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.
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Lamar (LAMR) Stock Rises on Q1 AFFO Beat, Revenues Rise Y/Y
Shares of Lamar Advertising Company (LAMR - Free Report) gained 1% on the May 2 normal trading session on the NYSE after it reported first-quarter 2024 adjusted funds from operations (AFFO) per share of $1.54, beating the Zacks Consensus Estimate of $1.52. The figure also compared favorably with the prior-year quarter's tally of $1.41.
Results reflect year-over-year growth in the top line. However, higher interest expenses during the quarter acted as a dampener.
Quarterly net revenues of $498.2 million increased 5.7% on a year-over-year basis and beat the consensus mark of $488.8 million.
Per the company’s chief executive, Sean Reilly, “Our first-quarter results exceeded our internal expectations, with particular strength in local sales. In addition, we returned to same-store growth in digital, and the rest of 2024 is shaping up well. As a result, we are raising our guidance for full-year diluted AFFO to a range of $7.75 to $7.90 per share.”
Quarter in Detail
Operating income of $124.6 million climbed 4.9% from the year-ago period’s $118.8 million, while the adjusted EBITDA increased 7.1% to $211.9 million.
Acquisition-adjusted net revenues for the first quarter climbed 5.3% year over year. Also, acquisition-adjusted EBITDA rose 6.5%.
Interest expenses increased 7.3% year over year to $44.5 million during the reported quarter.
The company’s free cash flow of $138.7 million increased 22.4% year over year in the quarter.
Balance Sheet
The cash flow provided by operating activities in the three months ended Mar 31, 2024, was $110.6 million compared with $108.7 million recorded in the year-ago period.
As of Mar 31, 2024, Lamar Advertising had a total liquidity of $634.8 million. This comprised $598.4 million available for borrowing under its revolving senior credit facility and $36.4 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $143 million and $235.7 million under the Accounts Receivable Securitization Program.
Lamar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lamar Advertising Company Price, Consensus and EPS Surprise
Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote
Performance of Other REITs
Ventas, Inc. (VTR - Free Report) reported first-quarter 2024 normalized funds from operations (FFO) per share of 78 cents, beating the Zacks Consensus Estimate of 74 cents. The reported figure increased 5.4% from the prior-year quarter’s tally.
Results reflect better-than-anticipated revenues. Also, Ventas’ same-store cash net operating income increased year over year on strong performance across the portfolio, except for triple-net leased properties. VTR has also raised its 2024 outlook.
Highwoods Properties Inc. (HIW - Free Report) reported first-quarter 2024 FFO per share of 89 cents, missing the Zacks Consensus Estimate of 90 cents. The figure was also lower than the prior-year quarter’s 98 cents.
Quarterly results reflect a fall in occupancy and higher operating expenses. HIW also revised its outlook for 2024.
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.