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Crown Castle (CCI) Up 3.7% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Crown Castle International Corporation (CCI - Free Report) . Shares have added about 3.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Crown Castle International (CCI - Free Report) Beats on Earnings in Q4
Net Income
The company reported quarterly earnings per share of $1.15, beating the Zacks Consensus Estimate of $1.11. However, GAAP net income fell 11.6% year over year to $124.7 million.
Revenue
Net revenue in the quarter increased 9.15% year over year to $1,032 million, beating the Zacks Consensus Estimate of $988 million. Site Rental Segment quarterly revenues were $817.3 million, up 4.1% year over year. Network Services Segment quarterly revenues were $215 million, up 33.9% year over year.
Operating Metrics
Quarterly operating income came in at $262 million compared with $230 in the year-ago quarter. Total operating expenses rose to $770.4 million from $716.1 million at the end of 2015. Operating margin in the reported quarter was 25.4% compared with 24.3% in the year-ago quarter. Quarterly adjusted EBITDA was approximately $574.6 million, representing a year-over-year increase of 6.5%
Cash Flow
During the fourth quarter of 2016, funds flow from operations (FFO) totaled $386.9 million compared with $410.3 million in the prior-year quarter. Quarterly adjusted funds flow from operations (AFFO) was $406.4 million compared with $372.2 million in the year-ago quarter.
Balance Sheet
At the end of Dec 2016, Crown Castle had cash and cash equivalents of approximately $567.6 million on its balance sheet compared with $178.8 million at the end of 2015. At fourth-quarter end, debt and other long-term obligations totaled approximately $12,069.4 million, up from $12,043.7 million at the end of 2015.
Cash Dividend Payment
During the reported quarter, Crown Castle’s efforts to reward its shareholders with quarterly cash dividends were impressive. Crown Castle paid a quarterly cash dividend of 95 cents per common share on Dec 30, 2016 to common stockholders of records at the closure of business on Dec 16, 2016.
First-Quarter 2017 Outlook
For the first quarter of 2017, Crown Castle expects Site Rental revenues in the range of $851 million to $856 million. Site Rental cost of operation is projected in the band of $263 million to $268 million. Adjusted EBITDA is anticipated between $575 million and $580 million. Site Rental gross margin is expected in the band of $586–$591 million. Interest expense (inclusive of amortization) is estimated at $132–$137 million. Meanwhile, FFO is anticipated in the $395–$400 million band. AFFO is projected in the $440–$445 million range and net income is projected at $88–$108 million.
Full-Year 2017 Outlook
CrownCastle has raised its outlook for 2017. The company now expects Site Rental revenues in the range of $3,468–$3,498 million. Site Rental cost of operation is projected in the $1,063–$1,093 million band. Site Rental gross margin is expected between $2,391 million and $2,421 million. Adjusted EBITDA is anticipated between $2,358 million and $2,388 million. Interest expense (inclusive of amortization) is estimated in the $540–$570 million range. FFO is projected at $1,616–$1,646 million. AFFO is expected between $1,801 million and $1,831 million. Net income is anticipated between $360 million and $410 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Crown Castle International Corporation Price and Consensus
At this time, Crown Castle's stock has a average score of 'C' on both growth and momentum front. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable for growth and momentum based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Crown Castle (CCI) Up 3.7% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Crown Castle International Corporation (CCI - Free Report) . Shares have added about 3.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Crown Castle International (CCI - Free Report) Beats on Earnings in Q4
Net Income
The company reported quarterly earnings per share of $1.15, beating the Zacks Consensus Estimate of $1.11. However, GAAP net income fell 11.6% year over year to $124.7 million.
Revenue
Net revenue in the quarter increased 9.15% year over year to $1,032 million, beating the Zacks Consensus Estimate of $988 million. Site Rental Segment quarterly revenues were $817.3 million, up 4.1% year over year. Network Services Segment quarterly revenues were $215 million, up 33.9% year over year.
Operating Metrics
Quarterly operating income came in at $262 million compared with $230 in the year-ago quarter. Total operating expenses rose to $770.4 million from $716.1 million at the end of 2015. Operating margin in the reported quarter was 25.4% compared with 24.3% in the year-ago quarter. Quarterly adjusted EBITDA was approximately $574.6 million, representing a year-over-year increase of 6.5%
Cash Flow
During the fourth quarter of 2016, funds flow from operations (FFO) totaled $386.9 million compared with $410.3 million in the prior-year quarter. Quarterly adjusted funds flow from operations (AFFO) was $406.4 million compared with $372.2 million in the year-ago quarter.
Balance Sheet
At the end of Dec 2016, Crown Castle had cash and cash equivalents of approximately $567.6 million on its balance sheet compared with $178.8 million at the end of 2015. At fourth-quarter end, debt and other long-term obligations totaled approximately $12,069.4 million, up from $12,043.7 million at the end of 2015.
Cash Dividend Payment
During the reported quarter, Crown Castle’s efforts to reward its shareholders with quarterly cash dividends were impressive. Crown Castle paid a quarterly cash dividend of 95 cents per common share on Dec 30, 2016 to common stockholders of records at the closure of business on Dec 16, 2016.
First-Quarter 2017 Outlook
For the first quarter of 2017, Crown Castle expects Site Rental revenues in the range of $851 million to $856 million. Site Rental cost of operation is projected in the band of $263 million to $268 million. Adjusted EBITDA is anticipated between $575 million and $580 million. Site Rental gross margin is expected in the band of $586–$591 million. Interest expense (inclusive of amortization) is estimated at $132–$137 million. Meanwhile, FFO is anticipated in the $395–$400 million band. AFFO is projected in the $440–$445 million range and net income is projected at $88–$108 million.
Full-Year 2017 Outlook
CrownCastle has raised its outlook for 2017. The company now expects Site Rental revenues in the range of $3,468–$3,498 million. Site Rental cost of operation is projected in the $1,063–$1,093 million band. Site Rental gross margin is expected between $2,391 million and $2,421 million. Adjusted EBITDA is anticipated between $2,358 million and $2,388 million. Interest expense (inclusive of amortization) is estimated in the $540–$570 million range. FFO is projected at $1,616–$1,646 million. AFFO is expected between $1,801 million and $1,831 million. Net income is anticipated between $360 million and $410 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Crown Castle International Corporation Price and Consensus
Crown Castle International Corporation Price and Consensus | Crown Castle International Corporation Quote
VGM Scores
At this time, Crown Castle's stock has a average score of 'C' on both growth and momentum front. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable for growth and momentum based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.