UPDATE 1-Lamar posts narrower-than-expected Q1 loss
* Q1 results beat estimates
* Generates free cash flow in qtr
* Sees Q2 revenue $1 mln below estimates
* Shares rise as much as 23 percent
May 7 (Reuters) - Billboard firm Lamar Advertising Co (LAMR.O) posted a narrower-than-expected quarterly loss as it managed to rein in costs, and said free cash flow more than doubled, sending shares up as much as 23 percent.
The company posted a seven-fold increase in first-quarter net loss to $21.3 million, or 23 cents a shares, from $3.2 million, or 4 cents a share, a year ago. Revenue fell 13 percent to $247.2 million.
Analysts on average were expecting a loss of 29 cents a share, before special items, on revenue of $243.8 million, according to Reuters Estimates.
Lamar, which expects to generate free cash flow by 2009, said free cash flow in the quarter soared 112 percent to $45.5 million.
The company, which competes with Clear Channel Outdoor Holdings Inc (CCO.N), said operating costs for quarter fell 13 percent to $36.2 million.
The company's second-quarter revenue forecast of about $275 million was a shade under analysts' average expectation of $276 million.
Shares of Los Angeles-based Lamar were trading up 18 percent at $21.87 in morning trade on Nasdaq. They touched a high of $22.79 earlier in the session. (Reporting by Savio D'Souza in Bangalore; Editing by Vinu Pilakkott)
