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Shares of Lamar Advertising Company LAMR were up marginally on the Nov. 8 normal trading session on the Nasdaq after it reported third-quarter 2024 adjusted funds from operations (AFFO) per share of $2.15, which increased 5.4% year over year but missed the Zacks Consensus Estimate of $2.21.
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Results reflect year-over-year growth in the top line, though higher expenses acted as a dampener. The company experienced strength in local and programmatic sales.
Quarterly net revenues of $564.1 million increased 4.0% on a year-over-year basis and missed the consensus mark of $567.3 million.
Per the company’s chief executive, Sean Reilly, “Expenses were slightly elevated but as we move through Q4, we see that correcting and see full year consolidated EBITDA margins coming in right around 47%.” He also noted that “In addition, Q4 revenue growth is pacing ahead of Q3. Consequently, we are raising full year guidance for diluted AFFO to a range of $7.85 to $7.95 per share.”
LAMR’s Q3 in Detail
Operating income of $186.6 million declined 0.8% from the year-ago period, while the adjusted EBITDA increased 2.1% to $271.2 million.
Acquisition-adjusted net revenues for the third quarter climbed 3.6% year over year. Also, acquisition-adjusted EBITDA rose 1.8%.
Direct advertising expenses increased 4.2% year over year to $182.7 million during the reported quarter.
The company’s free cash flow of $198.1 million for the third quarter jumped 9.4% year over year.
Cash flow provided by operating activities was $227.4 million for the three months ended Sept. 30, 2024, up from $222.5 million for the third quarter of 2023.
LAMR’s Balance Sheet
As of Sept. 30, 2024, Lamar Advertising had a total liquidity of $450.7 million. This comprised $421.2 million available for borrowing under its revolving senior credit facility and $29.5 million in cash and cash equivalents. As of the same date, the company had $320.0 million in borrowings outstanding under its revolving credit facility and $249.8 million outstanding under the Accounts Receivable Securitization Program.
LAMR’s Outlook
Lamar Advertising raised its 2024 AFFO per share to the range of $7.85-$7.95 from the $7.75-$7.90 range guided earlier. The Zacks Consensus Estimate is currently pegged at $8.09.
Lamar currently carries a Zacks Rank #3 (Hold).
Lamar Advertising Company Price, Consensus and EPS Surprise
Lamar Advertising Company price-consensus-eps-surprise-chart | Lamar Advertising Company Quote
Performance of Other REITs
Public Storage PSA reported third-quarter 2024 core funds from operations (FFO) per share of $4.20, which missed the Zacks Consensus Estimate of $4.25. Also, the figure declined 3% year over year.
Public Storage experienced lower realized annual rent per occupied square foot and a decline in occupancy, as well as a rise in other direct property costs, repairs and maintenance expenses, marketing expenses and interest expenses in the quarter. PSA currently carries a Zacks Rank #3.
Federal Realty Investment Trust’s FRT third-quarter 2024 FFO per share of $1.71 narrowly missed the Zacks Consensus Estimate of $1.72. However, this marked a rise of 3.6% from the year-ago quarter’s tally of $1.65.
Results reflected healthy leasing activity and significant occupancy gains at its properties. FRT also tightened and increased its guidance for 2024 FFO per share. Currently, FRT carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.