Lamar Advertising (LAMR) Jumps as It Look at a REIT
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Price: $49.34 +1.48%
Rating Summary:
6 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
6 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade LAMR Now!
Shares of Lamar Advertising Co. (Nasdaq: LAMR) are surging higher Wednesday after saying it is currently considering an election to real estate investment trust (REIT) status.
Lamar said it intend to seek a private letter ruling from the Internal Revenue Service. If they proceed with a REIT election, they would likely make the election for the taxable year beginning January 1, 2014 during 2013, subject to the approval of our board of directors. Lamar warned investors, however, that there is no certainty as to the timing of a REIT election or whether they will ultimately decide to make a REIT election.
In fact, investors are so positive on the REIT news that they are overlooking weaker third quarter guidance. Lamar said it expects net revenue to be approximately $303 million to $306 million, which compares to the consensus of $307.5 million.
Analysts are positive on the news. MKM Partners' Eric Handler said, "we expect the shares of Lamar to outperform today, as the company announced that is considering an election to REIT status. This news will most likely overshadow a somewhat disappointing revenue outlook for 3Q12."
LAMR last traded at $34.89, up 10.8 percent.
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Lamar said it intend to seek a private letter ruling from the Internal Revenue Service. If they proceed with a REIT election, they would likely make the election for the taxable year beginning January 1, 2014 during 2013, subject to the approval of our board of directors. Lamar warned investors, however, that there is no certainty as to the timing of a REIT election or whether they will ultimately decide to make a REIT election.
In fact, investors are so positive on the REIT news that they are overlooking weaker third quarter guidance. Lamar said it expects net revenue to be approximately $303 million to $306 million, which compares to the consensus of $307.5 million.
Analysts are positive on the news. MKM Partners' Eric Handler said, "we expect the shares of Lamar to outperform today, as the company announced that is considering an election to REIT status. This news will most likely overshadow a somewhat disappointing revenue outlook for 3Q12."
LAMR last traded at $34.89, up 10.8 percent.
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