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

Lamar Advertising (NASDAQ:LAMR) issued its quarterly earnings data on Thursday. The real estate investment trust reported $1.58 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.58, FiscalAI reports. Lamar Advertising had a return on equity of 54.65% and a net margin of 23.90%.The firm had revenue of $616.75 million during the quarter, compared to analyst estimates of $606.61 million. 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 LAMR stock traded up $0.93 during trading hours on Friday, reaching $160.93. 589,351 shares of the stock were exchanged, compared to its average volume of 683,913. The firm has a market capitalization of $16.33 billion, a price-to-earnings ratio of 29.37 and a beta of 1.19. Lamar Advertising has a 12-month low of $113.66 and a 12-month high of $166.33. The company’s 50-day moving average price is $156.26 and its 200-day moving average price is $142.83. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 3.33.

Lamar Advertising Announces Dividend

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

Institutional Trading of Lamar Advertising

Several institutional investors and hedge funds have recently made changes to their positions in LAMR. AQR Capital Management LLC increased its stake in Lamar Advertising by 123.8% in the 2nd quarter. AQR Capital Management LLC now owns 1,475,525 shares of the real estate investment trust’s stock worth $177,152,000 after buying an additional 816,217 shares during the period. Invesco Ltd. raised its stake in Lamar Advertising by 97.8% in the third quarter. Invesco Ltd. now owns 991,990 shares of the real estate investment trust’s stock worth $121,439,000 after buying an additional 490,463 shares in the last quarter. Northern Trust Corp lifted its stake in shares of Lamar Advertising by 23.9% during the 3rd quarter. Northern Trust Corp now owns 1,629,554 shares of the real estate investment trust’s stock worth $199,490,000 after purchasing an additional 314,235 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in shares of Lamar Advertising by 1,839.7% in the 4th quarter. Corient Private Wealth LLC now owns 230,189 shares of the real estate investment trust’s stock valued at $29,137,000 after buying an additional 218,322 shares in the last quarter. Finally, Daiwa Securities Group Inc. boosted its stake in Lamar Advertising by 13.8% in the third quarter. Daiwa Securities Group Inc. now owns 1,478,299 shares of the real estate investment trust’s stock valued at $180,973,000 after acquiring an additional 178,880 shares in the last quarter. 93.78% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently commented on LAMR. Wells Fargo & Company increased their price target on Lamar Advertising from $136.00 to $150.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Citigroup downgraded Lamar Advertising from a “buy” rating to a “neutral” rating and lifted their price objective for the stock from $145.00 to $160.00 in a research note on Friday, July 10th. Morgan Stanley set a $170.00 price objective on Lamar Advertising in a report on Friday. TD Cowen increased their target price on Lamar Advertising from $150.00 to $170.00 and gave the company a “buy” rating in a research report on Thursday, May 14th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Lamar Advertising in a report on Friday, May 22nd. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Lamar Advertising currently has a consensus rating of “Hold” and a consensus price target of $160.00.

Key Stories Impacting Lamar Advertising

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

About Lamar Advertising

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.