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Crown Castle International (CCI) Q2 Earnings, Revenues Beat
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Crown Castle International Corp. (CCI - Free Report) reported strong financial numbers in the second quarter of 2016, wherein both the top and the bottom line outpaced the respective Zacks Consensus Estimate.
This Zacks Rank #3 (Hold) company competes with American Tower Corp. (AMT - Free Report) , SBA Communications Corp. (SBAC - Free Report) and Equinix Inc. (EQIX - Free Report) in the highly competitive wireless tower operator industry.
The company reported quarterly earnings per share of $1.16, beating the Zacks Consensus Estimate of $1.10. However, GAAP net income fell over 92.4% year over year to $88 million.
Net revenue in the quarter increased 7% year over year to $962.4 million, beating the Zacks Consensus Estimate of $948 million.
Gross margin in the reported quarter was 63.8% compared with 63.7% in the year-ago quarter. Operating income came in at $231.2 million compared with $240.7 million in the prior-year quarter. Quarterly adjusted EBITDA was approximately $550 million, representing a year-over-year increase of 6%.
Cash Flow
During the first quarter of 2016, funds flow from operations (FFO) totalled $356.4 million compared with $408.1 million in the prior-year quarter. Quarterly adjusted funds flow from operations (AFFO) was $392.5 million compared with $342.4 million in the year-ago quarter.
Balance Sheet
At the end of first half 2016, Crown Castle had cash and cash equivalents of approximately $202.3 million on its balance sheet compared with $178.8 million at the end of 2015. At second-quarter end, debt and other long-term obligations totaled approximately $12,426.2 million, up from roughly $12,150 million at the end of 2015.
Quarterly revenues were $804.6 million, up 9.2% year over year. Gross margin at the segment was 68.6% compared with 67.8% in the prior-year quarter.
Network Services Segment
Quarterly revenues were $157.8 million, down 2.8% year over year. Gross margin was 39.3% compared with 44.9% in the prior-year quarter.
Outlook for Third-Quarter 2016
For the third quarter, Crown Castle expects Site Rental revenues in the range of $805 million to $810 million. Site Rental cost of operation is projected in the band of $253 million to $258 million. Adjusted EBITDA is anticipated between $557 million and $562 million.
Site Rental gross margin is expected in the band of $549--$554 million. Interest expense (inclusive of amortization) is estimated in the range of $127–$132 million. Meanwhile, FFO is anticipated in the $375–$380 million range. AFFO is projected in the $400–$405 million range and net income is projected in the $91–$111 million band.
Outlook for 2016
Crown Castle has raised its outlook for 2016. The company now expects Site Rental revenues in the range of $3,213–$3,232 million. Site Rental cost of operation is projected in the $1007–$1,027 million band. Site Rental gross margin is expected between $2,197 million and 2,217 million.
Adjusted EBITDA is anticipated between $2,205 million and $2,225 million. Interest expense (inclusive of amortization) is estimated in the $508–$528 million range. FFO is projected at the $1,421–$1,441 million band. AFFO is expected between $1,595 million and $1,615 million. Net income is anticipated between $318 million and $358 million.
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Crown Castle International (CCI) Q2 Earnings, Revenues Beat
Crown Castle International Corp. (CCI - Free Report) reported strong financial numbers in the second quarter of 2016, wherein both the top and the bottom line outpaced the respective Zacks Consensus Estimate.
This Zacks Rank #3 (Hold) company competes with American Tower Corp. (AMT - Free Report) , SBA Communications Corp. (SBAC - Free Report) and Equinix Inc. (EQIX - Free Report) in the highly competitive wireless tower operator industry.
The company reported quarterly earnings per share of $1.16, beating the Zacks Consensus Estimate of $1.10. However, GAAP net income fell over 92.4% year over year to $88 million.
Net revenue in the quarter increased 7% year over year to $962.4 million, beating the Zacks Consensus Estimate of $948 million.
Gross margin in the reported quarter was 63.8% compared with 63.7% in the year-ago quarter. Operating income came in at $231.2 million compared with $240.7 million in the prior-year quarter. Quarterly adjusted EBITDA was approximately $550 million, representing a year-over-year increase of 6%.
Cash Flow
During the first quarter of 2016, funds flow from operations (FFO) totalled $356.4 million compared with $408.1 million in the prior-year quarter. Quarterly adjusted funds flow from operations (AFFO) was $392.5 million compared with $342.4 million in the year-ago quarter.
Balance Sheet
At the end of first half 2016, Crown Castle had cash and cash equivalents of approximately $202.3 million on its balance sheet compared with $178.8 million at the end of 2015. At second-quarter end, debt and other long-term obligations totaled approximately $12,426.2 million, up from roughly $12,150 million at the end of 2015.
CROWN CASTLE Price, Consensus and EPS Surprise
CROWN CASTLE Price, Consensus and EPS Surprise | CROWN CASTLE Quote
Site Rental Segment
Quarterly revenues were $804.6 million, up 9.2% year over year. Gross margin at the segment was 68.6% compared with 67.8% in the prior-year quarter.
Network Services Segment
Quarterly revenues were $157.8 million, down 2.8% year over year. Gross margin was 39.3% compared with 44.9% in the prior-year quarter.
Outlook for Third-Quarter 2016
For the third quarter, Crown Castle expects Site Rental revenues in the range of $805 million to $810 million. Site Rental cost of operation is projected in the band of $253 million to $258 million. Adjusted EBITDA is anticipated between $557 million and $562 million.
Site Rental gross margin is expected in the band of $549--$554 million. Interest expense (inclusive of amortization) is estimated in the range of $127–$132 million. Meanwhile, FFO is anticipated in the $375–$380 million range. AFFO is projected in the $400–$405 million range and net income is projected in the $91–$111 million band.
Outlook for 2016
Crown Castle has raised its outlook for 2016. The company now expects Site Rental revenues in the range of $3,213–$3,232 million. Site Rental cost of operation is projected in the $1007–$1,027 million band. Site Rental gross margin is expected between $2,197 million and 2,217 million.
Adjusted EBITDA is anticipated between $2,205 million and $2,225 million. Interest expense (inclusive of amortization) is estimated in the $508–$528 million range. FFO is projected at the $1,421–$1,441 million band. AFFO is expected between $1,595 million and $1,615 million. Net income is anticipated between $318 million and $358 million.
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