Lamar Q4 AFFO Meets Estimates, Revenues Miss, Stock Down 7.3%

Lamar Advertising Company LAMR reported fourth-quarter 2024 adjusted funds from operations (AFFO) per share of $2.21, which met the Zacks Consensus Estimate. The figure also compared favorably with the prior-year quarter's tally of $2.10.See the Zacks Earnings Calendar to stay ahead of market-making news.Results reflect year-over-year growth in the top line. However, higher direct advertising and general and administrative expenses during the quarter acted as a dampener. Shares of the company were 7.3% down on Feb. 20 at the close of the trading session.Quarterly net revenues of $579.6 million increased 4.3% on a year-over-year basis. However, it missed the consensus mark of $581.3 million.Per the company’s chief executive, Sean Reilly, “Our revenue growth accelerated in the fourth quarter, aided by strength in political, local and programmatic. This allowed us to deliver full-year AFFO of $7.99 per share, above the top end of our revised guidance range.”For full-year 2024, AFFO per share came in at $7.99, up 7% year over year. The figure beat the Zacks Consensus Estimate by a penny. Net revenues grew 4.6% to $2.21 billion.LAMR’s Fourth Quarter in DetailOperating income of $36.7 million fell 80.9% from the year-ago period’s $191.7 million, while the adjusted EBITDA increased 3.9% to $278.5 million.Acquisition-adjusted net revenues for the fourth quarter climbed 4.1% year over year to $579.6 million from the year-ago period’s $556.6 million. Also, acquisition-adjusted EBITDA rose 3.9% to $278.5 million from the year-ago period’s $268 million.Direct advertising expenses increased 2.6% year over year to $186.2 million during the reported quarter. General and administrative expenses jumped 6.3% year over year to $89.7 million in the reported quarter.The company’s free cash flow of $195.6 million increased 8.5% year over year in the quarter.LAMR’s Balance Sheet PositionThe cash flow provided by operating activities in the three months ended Dec. 31, 2024 was $279.3 million compared with $227.4 million recorded in the previous quarter.As of Dec. 31, 2024, Lamar Advertising had a total liquidity of $506.7 million. This comprised $457.2 million available for borrowing under its revolving senior credit facility and $49.5 million in cash and cash equivalents. As of the same date, the outstanding balance under the company’s revolving credit facility totaled $284 million and $250 million under the Accounts Receivable Securitization Program.LAMR’s 2025 OutlookFor the full year, LAMR expects AFFO per share between $8.13 and $8.28. The Zacks Consensus Estimate presently stands at $8.39, above the projected range.LAMR’s Zacks RankLamar 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-eps-surprise-chart | Lamar Advertising Company QuotePerformance of Other REITsVentas, Inc. VTR reported a fourth-quarter 2024 normalized FFO per share of 81 cents, beating the Zacks Consensus Estimate by a penny. The reported figure increased 6.6% from the prior-year quarter’s tally.VTR’s results reflected an increase in same-store cash net operating income, led by higher Senior Housing Operating Portfolio same-store average occupancy.Welltower Inc.’s WELL fourth-quarter 2024 normalized FFO per share of $1.13 surpassed the Zacks Consensus Estimate by a penny. The reported figure improved 17.7% year over year.Results reflected a rise in revenues on a year-over-year basis. The total portfolio same-store net operating income (SSNOI) increased year over year, driven by SSNOI growth in the senior housing operating portfolio. WELL issued its guidance for 2025.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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ventas, Inc. (VTR): Free Stock Analysis Report Lamar Advertising Company (LAMR): Free Stock Analysis Report Welltower Inc. (WELL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks