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Lamar's (LAMR) Stock Rises on Q2 AFFO and Revenue Beat
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Shares of Lamar Advertising Company (LAMR - Free Report) gained more than 2% on the Aug 8 normal trading session on the Nasdaq after it reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $2.08, which beat the Zacks Consensus Estimate of $2.07. The figure also compared favorably with the prior-year quarter's tally of $1.90.
Results reflect year-over-year growth in the top line, which was partly offset by higher interest expenses. The company’s solid revenue growth was driven by continued strong demand from local and regional advertisers.
Quarterly net revenues of $565.3 million increased 4.5% on a year-over-year basis and beat the consensus mark of $564.2 million.
Per the company’s chief executive, Sean Reilly, "The revenue gain, combined with continued discipline on expenses, allowed us to produce adjusted EBITDA growth of nearly 7% and diluted AFFO per share growth of 9.5%. Also, we continue to pace at the top end of our previously provided guidance of $7.75 to $7.90 for full year diluted AFFO per share.”
Quarter in Detail
Operating income of $184.2 million climbed 4.2% from the year-ago period, while the adjusted EBITDA increased 6.9% to $271.6 million.
Acquisition-adjusted net revenues for the second quarter climbed 3.9% year over year. Also, acquisition-adjusted EBITDA rose 6.3%.
Interest expenses increased 1.6% year over year to $44.3 million during the reported quarter.
The company’s free cash flow of $342.2 million for the six months ended Jun 30, 2024 increased 25.6% year over year.
The cash flow provided by operating activities for the six months ended Jun 30, 2024 was $366.9 million compared with $306.9 million recorded in the year-ago period.
Balance Sheet
As of Jun 30, 2024, Lamar Advertising had a total liquidity of $744.3 million. This comprised $666.4 million available for borrowing under its revolving senior credit facility and $77.9 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $75 million and $250 million under the Accounts Receivable Securitization Program.
OUTFRONT Media Inc. (OUT - Free Report) reported a second-quarter 2024 AFFO per share of 49 cents, which surpassed the Zacks Consensus Estimate of 46 cents. Results reflected lower operating expenses due to lower property lease costs. The company also witnessed higher average revenue per display across its portfolio. However, a rise in interest expenses hurt the performance to some extent. OUT carries a Zacks Rank #3 (Hold).
Public Storage (PSA - Free Report) reported second-quarter 2024 core funds from operations per share of $4.23, which surpassed the Zacks Consensus Estimate of $4.20. However, the figure declined 1.2% year over year. Quarterly revenues of $1.17 billion increased 4.8% year over year but narrowly missed the Zacks Consensus Estimate of $1.18 billion.
Public Storage experienced lower realized annual rent per occupied square foot and a decline in occupancy, as well as a rise in property tax expenses and interest expenses, in the quarter. Management noted that customer move-in rents were impacted by industry-wide competition and adjusted PSA’s outlook for 2024 to reflect market move-in rent dynamics. Presently, PSA carries a Zacks Rank #3.
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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Lamar's (LAMR) Stock Rises on Q2 AFFO and Revenue Beat
Shares of Lamar Advertising Company (LAMR - Free Report) gained more than 2% on the Aug 8 normal trading session on the Nasdaq after it reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $2.08, which beat the Zacks Consensus Estimate of $2.07. The figure also compared favorably with the prior-year quarter's tally of $1.90.
Results reflect year-over-year growth in the top line, which was partly offset by higher interest expenses. The company’s solid revenue growth was driven by continued strong demand from local and regional advertisers.
Quarterly net revenues of $565.3 million increased 4.5% on a year-over-year basis and beat the consensus mark of $564.2 million.
Per the company’s chief executive, Sean Reilly, "The revenue gain, combined with continued discipline on expenses, allowed us to produce adjusted EBITDA growth of nearly 7% and diluted AFFO per share growth of 9.5%. Also, we continue to pace at the top end of our previously provided guidance of $7.75 to $7.90 for full year diluted AFFO per share.”
Quarter in Detail
Operating income of $184.2 million climbed 4.2% from the year-ago period, while the adjusted EBITDA increased 6.9% to $271.6 million.
Acquisition-adjusted net revenues for the second quarter climbed 3.9% year over year. Also, acquisition-adjusted EBITDA rose 6.3%.
Interest expenses increased 1.6% year over year to $44.3 million during the reported quarter.
The company’s free cash flow of $342.2 million for the six months ended Jun 30, 2024 increased 25.6% year over year.
The cash flow provided by operating activities for the six months ended Jun 30, 2024 was $366.9 million compared with $306.9 million recorded in the year-ago period.
Balance Sheet
As of Jun 30, 2024, Lamar Advertising had a total liquidity of $744.3 million. This comprised $666.4 million available for borrowing under its revolving senior credit facility and $77.9 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $75 million and $250 million under the Accounts Receivable Securitization Program.
Lamar currently carries a Zacks Rank #2 (Buy). 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-eps-surprise-chart | Lamar Advertising Company Quote
Performance of Other REITs
OUTFRONT Media Inc. (OUT - Free Report) reported a second-quarter 2024 AFFO per share of 49 cents, which surpassed the Zacks Consensus Estimate of 46 cents. Results reflected lower operating expenses due to lower property lease costs. The company also witnessed higher average revenue per display across its portfolio. However, a rise in interest expenses hurt the performance to some extent. OUT carries a Zacks Rank #3 (Hold).
Public Storage (PSA - Free Report) reported second-quarter 2024 core funds from operations per share of $4.23, which surpassed the Zacks Consensus Estimate of $4.20. However, the figure declined 1.2% year over year. Quarterly revenues of $1.17 billion increased 4.8% year over year but narrowly missed the Zacks Consensus Estimate of $1.18 billion.
Public Storage experienced lower realized annual rent per occupied square foot and a decline in occupancy, as well as a rise in property tax expenses and interest expenses, in the quarter. Management noted that customer move-in rents were impacted by industry-wide competition and adjusted PSA’s outlook for 2024 to reflect market move-in rent dynamics. Presently, PSA carries a Zacks Rank #3.
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.