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American Tower (AMT) Beats on Q4 Earnings, Revenues Lag

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American Tower Corp. (AMT - Free Report) reported mixed financial numbers in the fourth quarter of 2016. While the bottom line outpaced the Zacks Consensus Estimate, the top line lagged the same.

Quarterly adjusted Funds from Operations (AFFO) of $631 million were up 17% year over year.  AFFO per share was $1.47, up 16.7% year over year. Moreover, the AFFO per share of $1.47 surpassed the Zacks Consensus Estimate of $1.42.

Total revenue of $1,539.6 million increased 20.3% year over year but missed the Zacks Consensus Estimate of $1,550 million.

Adjusted EBITDA in the reported quarter was $936 million, up 16.7% year over year. Adjusted EBITDA margin came in at 60.8%, flat year over year. Selling, general & administrative expenses totaled $138.3 million compared with $143.4 million in the year-earlier quarter. Operating income was $489.3 million, up 21.7% year over year.

In the fourth quarter of 2016, American Tower generated $725 million of cash from operations, up 13.4% year over year. Free cash flow, in the reported quarter was $513 million, up 19.6% year over year.

At the end of 2016, the company had $787.2 million in cash and cash equivalents and around $18,294.7 million of outstanding long-term debt compared with $320.7 million and $17,068.8 million, respectively, at the end of 2015.

American Tower currently carries a Zacks Rank #4 (Sell). The company competes with some major wireless tower operators like Crown Castle International Corp. (CCI - Free Report) , SBA Communications Corp. (SBAC - Free Report) and Equinix Inc. (EQIX - Free Report) . All the three stocks currently carry a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Property Segment

Quarterly revenues grossed $1,521 million, up 21.6% year over year. Operating profit margin was pegged at 63% compared with 66% in the prior-year quarter.

Within the Property segment, revenues from the U.S. totaled $852 million, up 2.8% year over year. Meanwhile, total international revenues came in at $670 million, up 58.8% year over year. Within this, revenues from Asia came in at $270 million, increasing a whopping 321.9% year over year. EMEA revenues grossed $134 million, up roughly 8.1% year over year. Latin America revenues totaled $265 million, up 13.2% year over year.

Services Segment

Quarterly revenues totaled $18 million, exhibiting a decline of 37.9% year over year. Operating margin was 50% compared with 46% in the prior-year quarter.

Outlook for 2017

For 2017, American Tower anticipates property revenue to be $6,210–$6,390 million. Net income will be $1,175–$1,245 million. Adjusted EBITDA will be $3,810–$3,910 million. Consolidated AFFO will be $2,700–$2,800 million.

American Tower Corporation (REIT) Price, Consensus and EPS Surprise

 

American Tower Corporation (REIT) Price, Consensus and EPS Surprise | American Tower Corporation (REIT) Quote

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