Lamar Advertising Co.
) reported a much narrower-than-anticipated loss in its first
quarter, and is expected to report a 28% year-over-year jump in
earnings for its second quarter on August 8. Over the past four
quarters, this Zacks #1 Rank (Strong Buy) advertising agency has
beaten twice, matched once and missed once, generating an average
earnings surprise of 26%.
Estimates Move Higher After Upbeat First Quarter
On May 3, Lamar posted a loss of 4 cents per share, narrower than
both the year-ago loss and the Zacks Consensus Estimate for a loss
of 14 cents. Net sales jumped 4% year over year and registered a
4.3% organic growth, above management's guidance of 3.0%.
Over the last 60 days, the Zacks Consensus Estimates for 2012 and
2013 each went up by a penny to 18 cents and 62 cents,
respectively. The estimates represent year-over-year growth of
822.7% for 2012 and 235.0% for 2013.
Considering the company's growth prospects, its valuation looks
reasonable on a P/B basis. Lamar is currently trading at a P/B
ratio of 3.1, up 16% from the peer group average of 2.6. Besides
P/B, the stock is also trading at a forward P/E of 146.1, a P/S of
2.2 and offers ROE of 2.2%, compared with the peer group's P/E of
13.2, P/S of 0.7 and ROE of 10.3%.
The chart below clearly shows that after a plunge in 2009, the
stock is back on the recovery path. Moreover, the Zacks Consensus
Estimate is scaling high for the stock in the years ahead.
Headquartered in Baton Rouge, Louisiana, Lamar Advertising Co was
founded in 1989 and provides outdoor advertising services in the
United States, Canada, and Puerto Rico. The company's prime
advertising modes include billboards, logo signs, and transit
As of December 31, 2011, it operated over 150 outdoor advertising
companies together with 143,000 billboard advertising displays in
44 states, Canada and Puerto Rico; logo businesses in 22 states and
the province of Ontario, Canada and approximately 60 transit
advertising franchises in the United States, Canada and Puerto
LAMAR ADVER CO (LAMR): Free Stock Analysis
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