Lamar Advertising Company Reports Mixed Results in Q3 2024
Lamar Advertising Company (NASDAQ: LAMR) reported its financial results for the third quarter ended September 30, 2024, revealing a solid performance across various metrics. The company achieved net revenues of $564.1 million, marking a 4.0% increase from the $542.6 million recorded in the same quarter of 2023.
This growth was primarily driven by strong local and programmatic sales, as highlighted by CEO Sean Reilly. Net income for the quarter rose to $147.8 million, up from $140.4 million in the previous year, representing a 5.3% increase. The adjusted EBITDA also saw a modest rise of 2.1% to $271.2 million, compared to $265.7 million in the third quarter of 2023.
The company reported an increase in cash flow from operating activities, reaching $227.4 million, up from $222.5 million in the prior year. Free cash flow also experienced a significant boost, increasing by 9.4% to $198.1 million. Lamar’s funds from operations (FFO) for the quarter stood at $214.0 million, reflecting a 1.9% increase from the same period last year.
Adjusted funds from operations (AFFO) rose by 5.7% to $220.7 million, with diluted AFFO per share increasing by 5.4% to $2.15. These results underscore Lamar’s ability to generate cash and maintain strong financial health despite a challenging economic environment.
LAMR Falls Short on Revenue Expectations in Q3 2024
When comparing the current quarter’s performance against market expectations, Lamar Advertising’s results were slightly below the anticipated figures. Analysts had projected earnings per share (EPS) of $1.41 and revenues of $568.83 million for the quarter. However, Lamar reported an EPS of $1.44, surpassing expectations, while its revenue fell short at $564.1 million.
This discrepancy can be attributed to slightly elevated expenses, which the company expects to address in the upcoming quarter. Despite the revenue shortfall, the company’s ability to exceed EPS expectations indicates effective cost management and operational efficiency.
The company’s net income per diluted share was $1.44, compared to the expected $1.41, showcasing a better-than-expected bottom-line performance. The increase in net income and EPS reflects Lamar’s strategic focus on enhancing profitability through targeted sales initiatives and cost control measures. While the revenue did not meet market expectations, the company’s robust earnings performance demonstrates its resilience and adaptability in navigating market challenges.
Lamar Advertising Revises Full-Year Guidance
Lamar Advertising has revised its full-year guidance, raising expectations for diluted AFFO to a range of $7.85 to $7.95 per share. This upward revision is driven by the anticipated revenue growth in the fourth quarter, which is pacing ahead of the third quarter. The company expects full-year consolidated EBITDA margins to stabilize around 47%, indicating confidence in its operational capabilities and market positioning.
Lamar’s guidance for net income per diluted share for the fiscal year 2024 is projected to be between $4.97 and $4.99. This reflects management’s optimism about the company’s future performance, supported by strong sales trends and strategic initiatives. The company remains focused on maintaining its status as a leading player in the outdoor advertising industry, leveraging its extensive network of digital billboards and diverse advertising formats to drive growth.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.