Lamar Advertising posted its results for the quarter ended December 2011. The company’s results have beaten analyst’s expectations. Investors responded by sending up Lamar shares 5 percent.
For the three months ending Dec. 31, Baton Rouge-based Lamar earned $6.3 million, or 7 cents per share, on revenue of $288.2 million. For the fourth quarter of 2010, the company lost $7.2 million, or 8 cents per share, on revenue of $275.5 million. Lamar said it expected first-quarter revenue of about $264 million, a 3 percent increase over the first quarter of 2011. For 2011, Lamar earned $8.2 million, or 9 cents per share, compared with a 2010 loss of $40.5 million, or 44 cents per share. Revenue rose to $1.13 billion from $1.09 billion.
The company was able to achieve higher revenue for the period over the expected income. On a consolidated basis the company did see increase in expenses by over 4 percent. The main contributor to that downward or that decreased amount, was primary the bonuses that were paid to the officers throughout the corporation. In 2011, the officer core took less in bonus payments then they did in 2010 based on performance grids, and so in the fourth quarter we accrued approximately $2 million less for officer bonuses then we did last year. So that’s primarily what contributed to that.
Lamar shares jumped $1.58 to close at $33.07. The shares have traded in a 52-week range of $16.49 to $40. We maintain a sell on the stock as there could be a dip in the advertising sales as companies are looking at reducing marketing cost for the upcoming quarter. This will have an direct effect on the stock.