Lamar Advertising Co. (LAMR - Free Report) reported third-quarter 2016 adjusted funds from operations (“FFO”) of $1.37 per share, surpassing the Zacks Consensus Estimate of $1.25 and ahead of the year-ago tally of $1.27.
Net revenue for the quarter increased 10.5% year over year to $387.5 million, slightly missing the Zacks Consensus Estimate of $388 million.
Quarter in Detail
Operating income rose to $119.8 million from $111.6 million recorded in the prior-year period. Adjusted earnings before interest, taxes, depreciation and amortization climbed 11.5% year over year to $177.3 million. Moreover, free cash flow increased 6.7% year over year to $116 million.
At the quarter end, Lamar had total liquidity of $222.4 million, of which $184.9 million was available under its revolving senior credit facility, and $37.5 million in cash and cash equivalents.
Lamar, backed by an improving operational performance, continues to ride the growth trajectory. The company’s diversified tenant base, impressive national footprint and a healthy balance sheet bode well for the long term.
Lamar currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.
Some REITs which are slated to report results next week are Apple Hospitality REIT, Inc. (APLE - Free Report) , Outfront Media Inc. (OUT - Free Report) and National Health Investors Inc. (NHI - Free Report) .
Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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