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Lamar's (LAMR) Q3 FFO Beats Estimates, Revenues Up Y/Y

LAMR NHI OUT APLE

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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.

Our Take

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.

LAMAR ADVER CO Price, Consensus and EPS Surprise

 

LAMAR ADVER CO Price, Consensus and EPS Surprise | LAMAR ADVER CO Quote

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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