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.

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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 Detail

Operating 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 Position

The 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 Outlook

For 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 Rank

Lamar 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 Quote

Performance of Other REITs

Ventas, 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.

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