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American Tower (AMT) Beats Q3 Earnings; Raises '16 View

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American Tower Corp. (AMT - Free Report) reported strong financial numbers in the third quarter of 2016, with both the top and the bottom line outpacing the Zacks Consensus Estimate.

This Zacks Rank #1 (Strong Buy) company competes with the likes of Crown Castle International Corp. (CCI - Free Report) , SBA Communications Corp. (SBAC - Free Report) and Equinix Inc. (EQIX - Free Report) in the wireless tower operator industry. You can see the complete list of today’s Zacks #1 Rank stocks here.

Adjusted Funds from Operations (AFFO) of $641.3 million or $1.49 per share in the quarter improved from the year-ago quarter’s $558 million or $1.31, respectively. Moreover, the bottom line surpassed the Zacks Consensus Estimate of $1.39.

Total revenue of $1,515 million increased 22.4% year over year and also beat the Zacks Consensus Estimate of $1,508 million.

Adjusted EBITDA in the reported quarter was $915 million, up 17.6% year over year. Adjusted EBITDA margin came in at 60%, down 3% from the third-quarter 2015 figure. Selling, general & administrative expenses totaled $131.5 million compared with $114.8 million in the year-earlier quarter. Operating income was $479 million, up 19.8% year over year.

At the end of the third quarter of 2015, the company had $530.3 million in cash and cash equivalents and around $18,436.1 million of outstanding long-term debt compared with $320.7 million and $17,068.8 million, respectively, at the end of 2015. Meanwhile, the debt-to-capitalization ratio stood at 0.68 versus 0.71 at the end of 2015.

Property Segment

Quarterly revenues grossed $1,498 million, up 23.5% year over year. Operating profit margin stood at 63% compared with 66% in the prior-year quarter.

Within the Property segment, revenues from the U.S. totaled $837 million, up 3.6% year over year. Meanwhile, total international revenues came in at $661 million, up 63.2% year over year. Within this, revenues from Asia came in at $270 million, increasing a significant 338% year over year. EMEA revenues grossed $131 million, up roughly 4.9% year over year. Latin America revenues totaled $260 million, up 19% year over year.

Services Segment

Quarterly revenues totaled $17 million, exhibiting a decline of 32.5% year over year. Operating margin was 51% versus 48% in the prior-year quarter.

Financial Outlook

For 2016, the company has raised its outlook for property revenue, net income, Adjusted EBITDA and Consolidated AFFO by $50 million, $15 million, $25 million and $30 million, respectively. Total revenue from the Property segment is now projected in the range of $5,685–$5,735 million. Adjusted EBITDA is anticipated in the band of $3,530–$3,560 million. AFFO is estimated at around $2,455–$2,485 million. Meanwhile, net income is forecasted at $995–$1,025 million while capital expenditure is projected in the $685–$785 million range.

AMER TOWER CORP Price, Consensus and EPS Surprise

 

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

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