Lamar Advertising (LAMR) Is Down 6.6% After Raising Full-Year Earnings Guidance and Beating Q2 Forecasts

• Lamar Advertising Company recently reported second-quarter 2025 results, posting sales of US$579.31 million and net income of US$154.36 million, both higher than the previous year, and updated its full-year earnings guidance to US$6.09–US$6.11 per diluted share.
• The new guidance and earnings figures highlight improved profitability and strengthen the company’s outlook amid ongoing investment in digital billboard expansion and acquisitions.
• We'll examine how Lamar's increased full-year earnings guidance shapes its investment narrative and future revenue growth expectations.

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Lamar Advertising Investment Narrative Recap

To be a shareholder in Lamar Advertising, you need to believe in the long-term growth of out-of-home media, especially the expanding role of digital billboards, and the company's ability to generate high cash flow for dividends and buybacks. The recent strong quarterly results and raised guidance may reinforce the key short-term catalyst: digital display expansion and acquisitions. However, the biggest present risk, replacing elevated 2024 political advertising revenue with consistent growth, remains, and this update does not materially change that concern.

Among Lamar's recent announcements, the plan to deploy at least 350 new digital billboards in 2025 aligns directly with current revenue catalysts. This digital expansion could help offset cyclical risks like potential declines in political ad spending, supporting the growth narrative that underpins investor confidence in Lamar even as the industry evolves.

But on the other hand, investors should be aware that with political ad spending expected to normalize in 2025, the company's revenue base could face pressure if...

Read the full narrative on Lamar Advertising (it's free!)

Lamar Advertising's narrative projects $2.5 billion revenue and $713.6 million earnings by 2028. This requires 3.7% yearly revenue growth and a $291.6 million earnings increase from $422.0 million.

Uncover how Lamar Advertising's forecasts yield a $132.40 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Five distinct fair value estimates from the Simply Wall St Community range from US$106.64 to US$201.93 per share. Against this spectrum of opinion, the company's focus on rapid digital billboard growth may hold important implications for future earnings and investor confidence.

Explore 5 other fair value estimates on Lamar Advertising - why the stock might be worth as much as 72% more than the current price!

Build Your Own Lamar Advertising Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lamar Advertising research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Lamar Advertising research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lamar Advertising's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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