Benzinga | Feb 25, 2021 10:07AM EST

Lamar Advertising Earnings Preview

Lamar Advertising (NASDAQ:LAMR) unveils its next round of earnings this Friday, February 26. Get prepared with Benzinga's ultimate preview for Lamar Advertising's Q4 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Lamar Advertising analysts model for earnings of $0.78 per share on sales of $413.89 million. In the same quarter last year, Lamar Advertising reported earnings per share of $1.02 on revenue of $462.66 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 post earnings in line with the consensus estimate when it reports Friday, EPS would be down 23.53%. Sales would be down 10.54% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.50 0.30 0.36 1.10EPS Actual 0.62 0.31 0.57 1.02Revenue Estimate 376.70 M 349.49 M 395.44 M 464.63 MRevenue Actual 386.11 M 347.65 M 406.57 M 462.66 M

Stock Performance

Shares of Lamar Advertising were trading at $90.22 as of February 24. Over the last 52-week period, shares are up 7.99%. Given that these returns are generally positive, long-term shareholders should 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.