Lamar Advertising (NASDAQ:LAMR) Announces Quarterly Earnings Results

Lamar Advertising (NASDAQ:LAMR) announced its quarterly earnings results on Thursday. The real estate investment trust reported $1.58 EPS for the quarter, meeting the consensus estimate of $1.58, FiscalAI reports. Lamar Advertising had a net margin of 23.90% and a return on equity of 54.65%. The firm had revenue of $616.75 million during the quarter, compared to the consensus estimate 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%

LAMR stock traded up $0.93 during trading on Friday, hitting $160.93. 589,351 shares of the company traded hands, compared to its average volume of 683,913. The firm has a market capitalization of $16.33 billion, a PE ratio of 29.37 and a beta of 1.19. Lamar Advertising has a 1 year low of $113.66 and a 1 year high of $166.33. The company has a 50-day moving average of $156.26 and a 200-day moving average of $142.83. The company has a debt-to-equity ratio of 3.33, a quick ratio of 0.58 and a current ratio of 0.58.

Lamar Advertising Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on LAMR. Weiss Ratings restated a “buy (b)” rating on shares of Lamar Advertising in a research report on Friday, May 22nd. JPMorgan Chase & Co. lifted their price target on Lamar Advertising from $153.00 to $160.00 and gave the stock a “neutral” rating in a research note on Friday. Citigroup cut 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 report on Friday, July 10th. Wells Fargo & Company raised their price objective on Lamar Advertising from $136.00 to $150.00 and gave the company an “equal weight” rating in a report on Friday, May 8th. Finally, Morgan Stanley set a $170.00 price objective on shares of Lamar Advertising in a report on Friday. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Lamar Advertising currently has an average rating of “Hold” and an average target price 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

Institutional Trading of Lamar Advertising

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC boosted its holdings in Lamar Advertising by 123.8% in the second quarter. AQR Capital Management LLC now owns 1,475,525 shares of the real estate investment trust’s stock valued at $177,152,000 after acquiring an additional 816,217 shares in the last quarter. Invesco Ltd. increased its position in Lamar Advertising by 97.8% during the 3rd quarter. Invesco Ltd. now owns 991,990 shares of the real estate investment trust’s stock valued at $121,439,000 after purchasing an additional 490,463 shares during the period. Northern Trust Corp raised its holdings in Lamar Advertising by 23.9% in 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 in the last quarter. Corient Private Wealth LLC raised its holdings in 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 worth $29,137,000 after purchasing an additional 218,322 shares in the last quarter. Finally, Daiwa Securities Group Inc. increased its position in shares of Lamar Advertising by 13.8% during 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 buying an additional 178,880 shares during the period. Institutional investors own 93.78% of the company’s stock.

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.