The earnings were better than expected. Net profit increased by nearly 53% and came at 22 cents a share, slightly better than the analyst average forecast by Thomson Reuters for 21 cents. Revenue increased by 6.5% to $324.7 million. The operating margin increased slightly from 21.2% to 21.6%. The operating income was $70.3 million compared to $64.5 million in Q2'12 (up 9%). The operating margin on a ttm basis is 17.47%. For H1'13, the revenue was $608.2 million compared to $571.1 million in H1'12 (up 6.5%). Net income during H'13 was $15.2 million compared to a net loss of $8.9 million in H1'12. The revenue forecast for Q3'13 was a bit muted ($320-$323 million). Lamar has done well over the years with good growth in revenues, and it has been reporting net profit over the last two years. Zacks has a price target of $46 for the stock. The analysts at Zacks stated that the company registered higher sales of advertising space with an increase in occupancy of its existing advertising displays and acquisition of newer ones. However, the analysts maintained a cautious stance due to rising operating expenses and competitive threats. They expressed concerns about the acquisitions which may result in capital expenditures and expenses related to integration costs. Deutsche Bank has a PT of $53 for the stock. Citigroup also has a PT of $53.00 for the stock. The company faces competition from companies in outdoor advertising like Clear Channel Outdoors (CCO). Competition from other segments of the advertising market, especially online advertising, is also strong. Social media sponsorship / native advertising is expected to increasingly find favor with the advertisers. IZEA (IZEA), a company operating in this space, recently posted record numbers for Q2'13. However, the strength of Lamar cannot be underestimated. It needs to remain alive to the changing needs of the marketplace.