Baton Rouge-based Lamar Advertising Co. reported its second-quarter adjusted funds from operations increased to $136.5 million, or $1.39 per share, compared to $133.7 million, or $1.37 per share, a year ago.
Revenue for the second quarter increased 2.5 percent to $397.1 million.
The outdoor advertiser's results outstripped Wall Street's expectations. Stock analysts surveyed by Zacks Investment Research had forecast $1.31 per share.
"Q2 came in largely as expected, and our team did a good job managing expenses," said CEO Sean Reilly. "However, due to what we now see as a sluggish ad environment for the rest of the year, we are reducing our full-year 2017 AFFO per share guidance accordingly."
Lamar now adjusted funds from operations, or AFFO, per share to be between $4.90 and $5.00. Earlier, the company had expected AFFO per share of $5.05 to $5.20. The lower forecast would still be higher than stock analysts' prediction of $4.83 per share.
Lamar is a real estate investment trust, which don't pay income taxes on profits as long as 90 percent are paid to shareholders through dividends. The trusts use different measures to gauge performance than stocks. AFFO helps predict a real estate investment trust's ability to pay dividends.