Lamar Advertising (NASDAQ:LAMR) Posts Quarterly Earnings Results, Meets Estimates

Lamar Advertising (NASDAQ:LAMR) released its quarterly earnings data on Thursday. The real estate investment trust reported $1.58 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $1.58, FiscalAI reports. The company had revenue of $616.75 million for the quarter, compared to analyst estimates of $606.61 million. Lamar Advertising had a return on equity of 54.65% and a net margin of 23.90%. Lamar Advertising updated its FY 2026 guidance to 5.950-5.990 EPS.

Here are the key takeaways from Lamar Advertising’s conference call:

• Strong Q2 performance: Acquisition-adjusted revenue increased 6.1%, adjusted EBITDA rose 7.3%, and the EBITDA margin reached a company-record 49.2%. AFFO per share grew 8.1% to $2.40.
• Lamar raised its full-year AFFO-per-share guidance to $8.75–$8.90, implying approximately 7% growth at the midpoint, with Q3 momentum and bookings tracking well; management expects second-half revenue growth to remain near Q2 levels.
• Digital and national advertising led growth, with digital revenue up 15.4%, programmatic sales up more than 50%, and national plus programmatic revenue up nearly 16%. Political spending is running ahead of 2024 levels and is expected to remain a tailwind in Q4.
• The company plans to recommend increasing the quarterly dividend to $1.65 per share and indicated a year-end special dividend is likely, consistent with its policy of distributing 100% of taxable income.
• Lamar expects more than $200 million of 2026 acquisition and easement spending and is preparing to close a smaller UPREIT transaction. Management cited strong liquidity and low leverage, although acquisition-adjusted expenses rose 5.1% in Q2 and are expected to grow around 4% for the full year.

Lamar Advertising Trading Up 0.6%

Shares of Lamar Advertising stock traded up $0.93 during midday trading on Friday, reaching $160.93. 589,351 shares of the company’s stock traded hands, compared to its average volume of 683,913. The company has a debt-to-equity ratio of 3.33, a quick ratio of 0.58 and a current ratio of 0.58. The company has a market cap of $16.33 billion, a PE ratio of 29.37 and a beta of 1.19. The stock has a 50 day moving average of $156.26 and a 200-day moving average of $142.83. Lamar Advertising has a 12 month low of $113.66 and a 12 month high of $166.33.

Lamar Advertising Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th were given a dividend of $1.60 per share. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $6.40 dividend on an annualized basis and a yield of 4.0%. Lamar Advertising’s dividend payout ratio is presently 118.08%.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Morgan Stanley set a $170.00 target price on Lamar Advertising in a research note on Friday. Wells Fargo & Company boosted their price objective on Lamar Advertising from $136.00 to $150.00 and gave the stock an “equal weight” rating in a report on Friday, May 8th. Citigroup cut shares of Lamar Advertising from a “buy” rating to a “neutral” rating and upped their price objective for the stock from $145.00 to $160.00 in a research report on Friday, July 10th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Lamar Advertising in a research note on Friday, May 22nd. Finally, TD Cowen boosted their price target on shares of Lamar Advertising from $150.00 to $170.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Lamar Advertising presently has an average rating of “Hold” and a consensus price target of $160.00.

Key Lamar Advertising News

Here are the key news stories impacting Lamar Advertising this week:

• Positive Sentiment: Q2 AFFO and revenue exceeded expectations. Lamar reported diluted AFFO of $2.40 per share, up 8.1% year over year and ahead of the approximately $2.30 consensus estimate. Revenue rose 6.5% to $616.7 million, exceeding analysts’ $606.6 million forecast, while adjusted EBITDA increased 9.0% to $303.4 million. Lamar’s Q2 FFO Beat Estimates on Revenue Growth, ’26 Guidance Raised
• Positive Sentiment: Management raised 2026 AFFO guidance. Citing better-than-expected results and strong advertising sales pacing, Lamar increased its full-year diluted AFFO-per-share outlook to $8.75-$8.90. Free cash flow also rose $19.6 million year over year in the quarter, supporting the investment case for cash generation. Lamar Advertising Reports Second Quarter 2026 Results, Raises Full-Year AFFO Guidance
• Positive Sentiment: Core profitability and cash flow improved. Q2 net income increased 6.2% to $164.6 million, operating cash flow climbed to $252.4 million, and adjusted EBITDA margin benefited from revenue growth and improved profitability.
• Neutral Sentiment: JPMorgan raised its price target but kept a Neutral rating. The firm increased its target from $153 to $160, indicating limited expected upside at the reported trading level. JPMorgan Price Target Update
• Negative Sentiment: Reported first-half GAAP earnings declined. Six-month net income fell 9.4% to $266.5 million, primarily because the prior-year period included a much larger gain from the sale of Lamar’s Vistar Media interest. The company also carries substantial debt, which leaves results sensitive to interest rates and economic conditions.
• Negative Sentiment: Headline EPS guidance is below consensus. Lamar’s 2026 diluted EPS guidance of $5.95-$5.99 is below the cited $8.41 analyst consensus, although REIT investors typically place greater emphasis on AFFO. Lamar Second-Quarter Operating Results

Institutional Trading of Lamar Advertising

Several institutional investors and hedge funds have recently bought and sold shares of LAMR. Caitong International Asset Management Co. Ltd purchased a new position in Lamar Advertising during the third quarter valued at $33,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Lamar Advertising in the third quarter worth $39,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of Lamar Advertising during the fourth quarter valued at $41,000. Los Angeles Capital Management LLC bought a new position in shares of Lamar Advertising during the fourth quarter valued at $49,000. Finally, Kelleher Financial Advisors purchased a new position in shares of Lamar Advertising in the 3rd quarter worth about $66,000. 93.78% of the stock is currently owned by hedge funds and other institutional investors.

Lamar Advertising Company Profile

Lamar Advertising Company (NASDAQ: LAMR) is one of North America’s largest outdoor advertising firms, specializing in out-of-home media solutions. Since its founding in 1902, the company has grown through a combination of organic expansion and strategic acquisitions to offer a broad portfolio of advertising products. Its core business centers on billboard advertising, encompassing traditional static billboards and a rapidly expanding network of digital displays. These assets enable advertisers to reach consumers with high-impact messaging along highways, in urban centers, and at high-traffic intersections.

In addition to highway billboards, Lamar offers a variety of supplemental out-of-home formats, including transit advertising on buses and shelters, and logo signage at travel plazas and gas stations.