Lamar Advertising Earnings Preview

Lamar Advertising LAMR announces its next round of earnings this Tuesday, May 04. Here is Benzinga's look at Lamar Advertising's Q1 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Lamar Advertising earnings will be near $0.36 per share on sales of $362.25 million, according to analysts. In the same quarter last year, Lamar Advertising announced EPS of $0.57 on revenue of $406.57 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 36.84%. Sales would be down 10.9% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Shares of Lamar Advertising were trading at $99.04 as of April 30. Over the last 52-week period, shares are up 84.52%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lamar Advertising is scheduled to hold the call at 09:00:00 ET and can be accessed here.