Lamar is one of the largest owners and operators of outdoor
advertising structures in the U.S. Lamar reported modest fourth
quarter 2013 results with year-over-year increase in earnings and
revenues. However, the earnings missed the Zacks Consensus Estimate
by $0.04. Lamar has registered higher sales of advertising space
with an increase in occupancy of its existing advertising displays
and acquisition of newer ones. The company also has ample liquidity
to fuel its growth engine. However, Lamar faces increased headwinds
in the form of rising operating expenses and competitive pressures.
We maintain our Neutral recommendation for Lamar as we expect it to
perform in line with the broader equity market.
Headquartered in Baton Rouge, Louisiana, Lamar Advertising
Company is one of the largest owners and operators of outdoor
advertising structures in the U.S. Although the company was founded
in 1902, Lamar has been publicly trading on NASDAQ since 1996. It
provides advertising services to restaurants, retailers,
automotive, real estate, health care, gaming, service, hotel and
motel, telecommunication, and amusement industries, including
entertainment and sports. Lamar together with its subsidiaries
provides outdoor advertising services in the United States, Canada,
and Puerto Rico.
Lamar has a single operating and reportable segment, namely
advertising. The company offers three types of outdoor advertising
displays: 1) billboards, 2) logo signs, and 3) transit advertising
displays. Lamar sells advertising space on two types of billboards:
bulletins and posters. Bulletins are generally large, illuminated
advertising structures and are typically located on major highways
and target vehicular traffic spots. On the other hand, posters are
relatively smaller than bulletins and are located on major traffic
arteries, city streets, and targeted vehicular and pedestrian
traffic spots. In addition to traditional billboards, Lamar also
offers digital billboards, which are usually located on major
traffic arteries and city streets.
Logo signs are normally located near highway exits, nearby gas,
food, camping, lodging and other attractions. Transit advertising
displays are advertising spaces sold on the exterior and interior
of public transportation vehicles, transit shelters and
Lamar Advertising Co. (LAMR): Read the Full
LAMAR ADVER CO (LAMR): Free Stock Analysis
To read this article on Zacks.com click here.