Lamar Advertising Company (REIT) (NASDAQ:LAMR) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of US$1.8b and statutory earnings per share of US$3.71. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Lamar Advertising Company (REIT)

Taking into account the latest results, the current consensus from Lamar Advertising Company (REIT)'s six analysts is for revenues of US$1.83b in 2020, which would reflect a satisfactory 4.6% increase on its sales over the past 12 months. Statutory earnings per share are expected to rise 2.7% to US$3.81. Yet prior to the latest earnings, analysts had been forecasting revenues of US$1.83b and earnings per share (EPS) of US$4.04 in 2020. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$92.00, with analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Lamar Advertising Company (REIT), with the most bullish analyst valuing it at US$109 and the most bearish at US$75.00 per share. This shows there is still quite a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

It can also be useful to step back and take a broader view of how analyst forecasts compare to Lamar Advertising Company (REIT)'s performance in recent years. It's pretty clear that analysts expect Lamar Advertising Company (REIT)'s revenue growth will slow down substantially, with revenues next year expected to grow 4.6%, compared to a historical growth rate of 5.9% over the past five years. Compare this to the other companies in this market with analyst coverage, which are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it looks like analysts are expecting Lamar Advertising Company (REIT) to grow at about the same rate as the wider market.

The Bottom Line

The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lamar Advertising Company (REIT). They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. The consensus price target held steady at US$92.00, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that in mind, we wouldn't be too quick to come to a conclusion on Lamar Advertising Company (REIT). Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Lamar Advertising Company (REIT) analysts - going out to 2022, and you can see them free on our platform here.

You can also see whether Lamar Advertising Company (REIT) is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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