* Q1 loss $0.27/shr vs est loss $0.30/shr
* Q1 rev $244.1 mln vs est $247.3 mln
* Shares down 11 pct
(Adds analyst comment, conference call details)
By Sudipto Ganguly
BANGALORE, May 6 Billboard operator Lamar
Advertising Co's (LAMR.O) shares fell 11 percent after the
company forecast weak quarterly revenue, underscoring concerns
that businesses continue to remain tight-fisted on ad spending.
Shares of the Baton Rouge, Louisiana-based Lamar, which
competes with CBS Outdoor -- a unit of CBS Corp (CBS.N) -- and
Clear Channel Outdoor Holdings Inc (CCO.N), fell 11 percent to
$31.27 in afternoon trade on Nasdaq.
The 108-year old company, which also operates logo signs
and transit advertising displays, expects second-quarter
revenue below analysts' expectations.
Lamar sees second-quarter revenue of about $282 million,
compared with analysts' expectations of $284.4 million.
Lazard Capital Markets analyst Barton Crockett said outdoor
advertising recovery was coming in slower than expected.
"However, ad markets are rebounding strongly on other local
media, and outdoor is seen as a few-quarter laggard," Crockett
said in a note to clients.
Historically, Lamar has been modestly conservative in their
forecast, Gilford Securities analyst Jim Boyle said in an
"With much of their second-quarter bookings already
in-house, the company is rarely surprised and likely has given
itself some margin in case the economy and advertising stalls,"
Pricing has firmed up in the smaller and middle markets
compared with the large markets, the company said on a
conference call with analysts.
"Slow and steady is the best way to describe where we think
we are headed for the rest of the year," Chief Executive Kevin
Reilly said on the call.
Lamar's first-quarter net loss widened to $24.8 million, or
27 cents a share, from $21.7 million, or 24 cents a share, last
year. Revenue declined about 1.3 percent to $244.1 million.
Analysts were expecting a loss of 30 cents a share, on
revenue of $247.3 million, according to Thomson Reuters
Operating expenses fell more than 4 percent to $233.3
million. For the alerts, click on [ID:nASA00BRA]
(Reporting by Sudipto Ganguly in Bangalore; Editing by Ratul