Earnings Preview: Lamar Advertising Company

| About: Lamar Advertising (LAMR)

Lamar Advertising Company (NASDAQ:LAMR) is expected to report Q3 earnings before market open Thursday, November 6 with a conference call scheduled for 11:00 am ET.


Analysts are looking for a profit of 5c on revenue of $305.7M. The consensus range is 1c to 10c for EPS, and revenue of $295M to $310.1M, according to First Call. For Q3, the company forecast revenue of about $309M.

Analyst Views

Ahead of the company's Q3 results, Caris analyst David Miller said he has performed a round of checks with media buying sources and has discovered that business has "fallen off the cliff," particularly in the last 10 days. Miller says that if the "proprietary sources" are correct, it is very possible that Lamar could be in violation of debt covenants in the "very near future". Soleil believes that Lamar's pricing for digital billboards are weak and that the billboards were "not immune" to advertising weakness in the quarter.

Additionally, the firm says advertising demand deteriorated in the last two weeks of Q3 and cancellations of Q4 orders increased. Citigroup believes shares are overvalued compared to other local ad-focused media and feels the credit crunch and ad downturn are a "bad combination" for the company.