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Lamar Advertising (LAMR) Q4 FFO & Revenues Grow Y/Y, Stock Up

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Lamar Advertising Company LAMR reported adjusted funds from operations (FFO) per share of $1.64, up 10.8% from the prior-year quarter’s $1.48. However, the figure missed the Zacks Consensus Estimate of $1.68.

This year-over-year improvement reflects healthy top-line growth, highlighting increase in national/programmatic revenues and same-unit digital revenues.

Moreover, shares of LAMR Advertising appreciated 1.04% during Thursday’s regular trading session, reflecting upbeat investor sentiment.

Net revenues for the quarter came in at $462.7 million, marking an 8.1% increase from the prior-year quarter. The revenue figure, however, lagged the Zacks Consensus Estimate of $465 million.

For full-year 2019, the company reported adjusted FFO per share of $5.80, up 5.5% from $5.50 in 2018. Net revenues for the full year came in at $1.75 billion, reflecting  7.8% growth, year on year.

Quarter in Detail

Acquisition-adjusted net revenues for the fourth quarter increased 2.7% year on year, while acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 4.7%. The company witnessed 7.7% growth in national/programmatic revenues. Moreover, same-unit digital revenues went up 4.6%.

Operating income improved 8.3% from the prior-year quarter to $141.4 million, while adjusted EBITDA went up 10.4% to $215.6 million. Additionally, free cash flow of $135.3 million in the December-end quarter improved 7.3% year over year.

At the end of fourth-quarter 2019, Lamar had total liquidity of $413.5 million, of which $387.3 million was available for borrowing under its revolving senior credit facility, and $26.2 million in cash and cash equivalents.

Outlook

Lamar Advertising projects 2020 AFFO per share of $6.05-$6.20, suggesting 4.3-7% year-over-year growth. The Zacks Consensus Estimate for the same is currently pinned at $6.18.

 

Lamar Advertising Company Price, Consensus and EPS Surprise

Lamar Advertising Company Price, Consensus and EPS Surprise

Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote

 

LAMR Advertising currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We, now, look forward to the earnings releases of other REITs like Public Storage PSA, Outfront Media Inc. OUT and Mack-Cali Realty Corporation CLI, all of which are slated to report their quarterly numbers next week.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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