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American Tower (AMT) Beats Q2 Earnings, Revenues Lag

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American Tower Corp. (AMT - Free Report) is a real estate investment trust and a leading wireless tower operator. The firm through its subsidiaries owns, operates and develops wireless and broadcast communications real estate.

Notably, American Tower has been aggressively buying towers in emerging markets. We believe the company’s acquisition spree should help drive its top line, going forward. Moreover, American Tower is certain that strength in its tower portfolio will help it double its AFFO per share by 2017. Further, higher adoption of smartphones/tablets, increased deployment of 3G/4G networks, significant margin improvement and dividend hikes also bode well.

On the flip side, the ongoing consolidation trend among telecom and cable TV operators may generate significant financial uncertainty for the company. To add to that, intensifying competition, high customer concentration, mounting operating expenses and a highly leveraged balance sheet remain headwinds.

American Tower currently carries a Zacks Rank #3 (Hold). The company has generated a negative average earnings surprise of 4.48% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: American Tower reported second-quarter 2016 earnings per share of $1.38, while the Zacks Consensus Estimate was $1.33.

Revenue: Revenues of $1,442 million came slightly below the Zacks Consensus Estimate of $1,445 million. 

Key Stats to Note: In the property segment, the company’s core growth was 22.8% in the second quarter of 2016 compared with 13.9% in the second quarter of 2015. Total tenants billing growth was 23.1% against 24.5% in the prior-year quarter. During the second quarter of 2016, the company spent $1.2 billion to acquire 42,975 sites internationally.

AMER TOWER CORP Price and EPS Surprise

AMER TOWER CORP Price and EPS Surprise | AMER TOWER CORP Quote

Check back later for our full write up on this American Tower earnings report later! 

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