Benchmark Cuts Price Target on Lamar Advertising (LAMR), Sees Advertising Sales Increasing 3-4%
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Price: $155.47 +0.21%
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark is maintaining its Buy rating on shares of Lamar Advertising (NASDAQ: LAMR), but is lowering its price target from $39 to $33.
The company's Q2 outlook of $296 million in revenue is due to softness in local advertising in April and May. Management stated that June was flowing ahead of April and May, and that Q3 was ahead of Q2.
The firm reports that bulletin occupancy should hold steady at about 70% while Poster occupancy stands near 60%, reflecting softness in local advertising. The rates should sustain its trend upward at a low-single digit pace for both although
advertisers remain reluctant to make long-term commitments.
Digital board count at mid-year is estimated to stand near 1,300 – 670 bulletins and 630 posters – with over 100 boards added. The firm notes that that its annualized rollout rate is below management’s goal of 300 boards as deployment had been delayed by harsh weather conditions in April, although management still intends to reach its 300 board goal by year-end.
Benchmark estimates that Q2 revenue will be up 3 percent year-over-year to over $296 million while EBITDA will be around $136 million. EPS is expected to be around $0.10. The firm lowered its FY11 forecasts to $1.14 billion in revenue, $485 million in EBITDA, and EPS of $0.00. Free cash flow is predicted to be around $2.44 per share.
For more ratings news on Lamar Advertising click here and for the rating history of Lamar Advertising click here.
Shares of Lamar Advertising closed at $27.50 yesterday.
The company's Q2 outlook of $296 million in revenue is due to softness in local advertising in April and May. Management stated that June was flowing ahead of April and May, and that Q3 was ahead of Q2.
The firm reports that bulletin occupancy should hold steady at about 70% while Poster occupancy stands near 60%, reflecting softness in local advertising. The rates should sustain its trend upward at a low-single digit pace for both although
advertisers remain reluctant to make long-term commitments.
Digital board count at mid-year is estimated to stand near 1,300 – 670 bulletins and 630 posters – with over 100 boards added. The firm notes that that its annualized rollout rate is below management’s goal of 300 boards as deployment had been delayed by harsh weather conditions in April, although management still intends to reach its 300 board goal by year-end.
Benchmark estimates that Q2 revenue will be up 3 percent year-over-year to over $296 million while EBITDA will be around $136 million. EPS is expected to be around $0.10. The firm lowered its FY11 forecasts to $1.14 billion in revenue, $485 million in EBITDA, and EPS of $0.00. Free cash flow is predicted to be around $2.44 per share.
For more ratings news on Lamar Advertising click here and for the rating history of Lamar Advertising click here.
Shares of Lamar Advertising closed at $27.50 yesterday.
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