Lamar Advertising Earnings Perspective: ROI

According to Benzinga Pro, during the first trimester, Lamar Advertising AMR earned $92.15 million, an increase of 25.27% over the previous quarter. Lamar Advertising sales decreased to $451.39 million, a change of 8.73% from the fourth quarter. Lamar Advertising earned $123.31 million and sales totaled $494.57 million in the fourth quarter.

What is ROI?

Return on invested capital is a measure of the annual pre-tax profit relative to the capital invested by a business. Changes in profits and sales indicate changes in a company’s ROIC. A higher return on investment is generally indicative of successful business growth and is a sign of higher earnings per share in the future. A low or negative ROIC suggests otherwise. In the first quarter, Lamar Advertising posted a ROIC of 2.75%.

Keep in mind that while ROI is a good measure of a company’s recent performance, it’s not a very reliable indicator of a company’s profits or sales in the near future.

Return on invested capital is a measure of the annual pre-tax profit relative to the capital invested by a business. Changes in profits and sales indicate changes in a company’s ROIC. A higher return on investment is generally indicative of successful business growth and is a sign of higher earnings per share in the future. A low or negative ROIC suggests otherwise. In the first quarter, Lamar Advertising posted a ROIC of 2.75%.

Keep in mind that while ROI is a good measure of a company’s recent performance, it’s not a very reliable indicator of a company’s profits or sales in the near future.

For Lamar Advertising, the positive ROI ratio of 2.75% suggests that management is allocating its capital efficiently. Efficient capital allocation is a positive indicator that a business will achieve more sustainable success and favorable long-term returns.

Analyst predictions

Lamar Advertising reported first-quarter earnings per share of $0.91/share, beating analysts’ forecast of $0.72/share.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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