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Lamar Advertising's (LAMR) Q2 FFO & Revenues Miss Estimates

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Lamar Advertising Company LAMR reported funds from operations (FFO) per share of 95 cents for the second quarter, down 38.3% from the prior-year quarter’s $1.54. Moreover, the figure missed the Zacks Consensus Estimate of $1.02.

Results reflect a year-over-year fall in net revenues. However, the company’s efforts to control its operating expenses provided support.

Net revenues for the quarter came in at $347.7 million, marking a 22.5% decline from the prior-year quarter. Moreover, the revenue figure missed the Zacks Consensus Estimate of $370.3 million.

The company’s measures to boost liquidity and lower its operating expenses, included issuance of senior notes, temporary franchise fee relief and workforce reduction, during the second quarter.

Shares of Lamar Advertising appreciated marginally during Thursday’s regular trading session.

The company revised its guidance for the current year, reflecting the impact of the coronavirus pandemic on its operations.

Quarter in Detail

Acquisition-adjusted net revenues for the second quarter decreased 23.4% year on year to $347.7 million. Also, acquisition-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) plunged 36.4% to $133.2 million.

Operating income plummeted 54% from the prior-year quarter to $66.5 million, while adjusted EBITDA went down 35.9% to $133.2 million. Additionally, free cash flow of $88.1 million in the June-end quarter dipped 33.7% year over year.

Balance Sheet

At the end of second-quarter 2020, Lamar Advertising had total liquidity of $1.1 billion. This comprised $737.2 million available for borrowing under its revolving senior credit facility, $171.8 million available under the Accounts Receivable Securitization Program and $177.1 million in cash and cash equivalents.


Lamar Advertising has revised the 2020 guidance to account for the impact of the coronavirus crisis. It now projects 2020 AFFO per share at $4.16-$4.56. The company had earlier estimated the ongoing year’s AFFO per share in the $6.05-$6.20 band.

Lamar Advertising 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 and EPS Surprise
Lamar Advertising Company Price, Consensus and EPS Surprise

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

Performance of Other REITs

OUTFRONT Media’s OUT second-quarter 2020 adjusted FFO share was a deficit of 15 cents. The Zacks Consensus Estimate for the same was a deficit of 17 cents. In the prior-year quarter, the company had reported adjusted FFO per share of 67 cents.

Extra Space Storage, Inc. EXR delivered second-quarter core FFO per share of $1.24. The figure came in 6.9% higher than the prior-year quarter’s $1.16. The Zacks Consensus Estimate for the same was $1.16.

Mack-Cali Realty Corp’s CLI core FFO per share of 28 cents missed the Zacks Consensus Estimate of 31 cents in the June-end quarter. The figure also compared unfavorably with the year-ago quarter’s reported number of 40 cents.

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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