Lamar Advertising (NASDAQ:LAMR) Releases Earnings Results, Misses Expectations By $0.68 EPS

Lamar Advertising (NASDAQ:LAMR) issued its earnings results on Friday. The real estate investment trust reported $1.50 earnings per share for the quarter, missing the consensus estimate of $2.18 by ($0.68), FiscalAI reports. Lamar Advertising had a net margin of 19.27% and a return on equity of 43.02%. The company had revenue of $595.93 million for the quarter, compared to analysts’ expectations of $592.70 million. Lamar Advertising updated its FY 2026 guidance to 5.720-5.830 EPS.

Here are the key takeaways from Lamar Advertising’s conference call:

• Full-year AFFO guidance of $8.50–$8.70 per share (midpoint ~4.1% AFFO/share growth) implying ~3.5% acquisition‑adjusted revenue growth and consolidated operating margins of over 47%, the highest in company history.
• Q4 momentum continued into 2026 with acquisition‑adjusted revenue up >4% (ex‑political), programmatic up ~19%, and digital now representing 31.6% of revenues after adding 111 digital units in Q4 (5,553 total), with similar internal digital deployment plans for 2026.
• Active M&A posture — 50 acquisitions in 2025 for $191M (including the Verde UPREIT), 7 deals YTD (~$40M), and management expects to deploy roughly the same ~$200M of cash acquisitions in 2026 with effective post‑synergy economics (~10–11x for Lamar).
• Expense pressures persist as operating expenses are expected to grow ~3% in 2026 driven partly by healthcare inflation and ERP-related costs, with maintenance CapEx budgeted at about $64M (total 2025 CapEx was $180.8M).
• Strong balance sheet and shareholder return optionality with ~$800M liquidity, total debt of ~$3.4B, net leverage ~2.92x, investment capacity >$1B, and a proposed Q1 dividend of $1.60 (annualized $6.40, ~4.8% yield).

Lamar Advertising Stock Up 0.9%

Shares of LAMR traded up $1.18 during mid-day trading on Friday, reaching $134.01. The company had a trading volume of 957,393 shares, compared to its average volume of 485,695. The company has a debt-to-equity ratio of 3.04, a quick ratio of 0.59 and a current ratio of 0.59. The company has a market capitalization of $13.57 billion, a price-to-earnings ratio of 31.46 and a beta of 1.23. The firm has a 50-day moving average price of $129.19 and a 200 day moving average price of $126.15. Lamar Advertising has a 52 week low of $99.84 and a 52 week high of $136.69.

Lamar Advertising Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd were issued a dividend of $1.55 per share. This represents a $6.20 annualized dividend and a dividend yield of 4.6%. The ex-dividend date was Monday, December 22nd. Lamar Advertising’s dividend payout ratio (DPR) is presently 145.54%.

Analyst Ratings Changes

A number of research firms have recently weighed in on LAMR. Citigroup increased their price objective on Lamar Advertising from $135.00 to $145.00 and gave the company a “buy” rating in a research note on Thursday, November 13th. Morgan Stanley set a $140.00 price target on shares of Lamar Advertising in a report on Tuesday, December 16th. JPMorgan Chase & Co. raised their price target on shares of Lamar Advertising from $122.00 to $128.00 and gave the stock a “neutral” rating in a report on Wednesday, November 12th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Lamar Advertising in a research report on Monday, December 29th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $133.00.

Institutional Investors Weigh In On Lamar Advertising

Several hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC raised its position 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 last quarter. Invesco Ltd. boosted its holdings in shares of 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 acquiring an additional 490,463 shares during the last quarter. Northern Trust Corp grew its stake in shares of Lamar Advertising by 23.9% in the third quarter. Northern Trust Corp now owns 1,629,554 shares of the real estate investment trust’s stock worth $199,490,000 after acquiring an additional 314,235 shares during the period. Corient Private Wealth LLC raised its holdings in shares of Lamar Advertising by 1,839.7% during the fourth quarter. Corient Private Wealth LLC now owns 230,189 shares of the real estate investment trust’s stock valued at $29,137,000 after purchasing an additional 218,322 shares during the last quarter. Finally, Daiwa Securities Group Inc. raised its holdings 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 purchasing an additional 178,880 shares during the last quarter. 93.78% of the stock is owned by institutional investors.

Key Headlines Impacting Lamar Advertising

Here are the key news stories impacting Lamar Advertising this week:

• Positive Sentiment: Operational momentum: Q4 net revenues rose 2.8% to $595.9M, adjusted EBITDA increased 3.7% and management said local and national sales showed momentum into 2026 — supports organic revenue/EBITDA stability. GlobeNewswire Release
• Positive Sentiment: FFO/AFFO resilience: Q4 diluted AFFO per share rose to $2.24 (FFO/AFFO roughly in line or beating some estimates), indicating REIT cash metrics held up despite tougher comps. Zacks FFO Note
• Neutral Sentiment: Readouts and transcripts: Management held the scheduled call and transcripts/summaries are available for detail on pacing, digital deployment and capital spending plans — useful for drilling into guidance assumptions. Yahoo Earnings Call Summary
• Negative Sentiment: GAAP EPS miss: Reported EPS for Q4 was $1.50, below analyst consensus (~$2.18), a headline that can pressure near‑term sentiment despite solid revenue/EBITDA. MSN Earnings Note
• Negative Sentiment: Lower FY‑2026 earnings guide vs. Street: Management set net income per diluted share guidance of $5.72–$5.83 (and AFFO guidance $8.50–$8.70) — below many analyst models — which can weigh on valuation and future estimates. GlobeNewswire Release
• Negative Sentiment: Quality of earnings & cash flow softness: Full‑year net income was helped by a one‑time gain (sale of Vistar) and prior-year accounting adjustments; operating cash flow and free cash flow declined modestly year‑over‑year — raises questions about sustainability. Insiders have sold shares recently per filings. QuiverQuant Summary

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.