We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Tower (AMT) Q1 Earnings: Is a Beat in the Offing?
Read MoreHide Full Article
Leading international wireless tower operator, American Tower Corp. (AMT - Free Report) is slated to report first-quarter 2017 results before the opening bell on Apr 27.
In the last reported fourth quarter of 2016, American Tower posted a positive earnings surprise of 3.52%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 6.82%.
Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that American Toweris likely to beat estimates because it has the right combination of the two key elements.
Zacks ESP: American Tower has an Earnings ESP of +1.33%. This is because the Most Accurate estimate stands at $1.53 while the Zacks Consensus Estimate is pegged lower at $1.51. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with ourEarnings ESP Filter.
Zacks Rank: American Tower has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of American Tower’sfavorableZacks Rank and positive ESP makes us confident of an earnings beat.
American Tower Corporation (REIT) Price and EPS Surprise
What is Driving the Better-than-Expected Earnings?
American Tower continues to benefit from increased investment of wireless carriers in 5G networks. Next-generation 4G LTE and 5G networks and increased usage of smartphones and tablets are building up demand for tower leasing. Additionally, the company’s increased investments in Asia are paying off. We expect the benefits to reflect in the upcoming results.
We further believe that American Tower’s tower buyouts in emerging markets will drive its top line and lend it a competitive edge in the to-be reported quarter. American Tower’s Indian, EMEA and Latin American operations account for almost 50% of its organic core revenue growth.
As a result of the $100-million tower lease agreement with U.S. telecom behemoth AT&T Inc. (T), American Tower has also raised its 2017 revenue guidance to a range of $6.31–$6.49 billion from the previous estimate of $6.21–$6.39 billion.
We are also impressed with American Tower Corporation’s efforts to reward its stockholders with a quarterly cash distribution of 62 cents per share on shares of the company’s common stock. The distribution will be paid on Apr 28, 2017 to such stockholders of record at the close of business on Apr 12, 2017.
We believe American Tower’s efforts to drum up its business helped it to outperform the Zacks categorized Reit- Equity Trust Other industry over the past three months. The stock gained over 19.1% compared with the industry’s growth of 4.7% over the same time frame.
On the other hand, high customer concentration, foreign currency exchange rate risks, stiff competition, integration risks, rising operating expenses and a highly leveraged balance sheet are risks to first-quarter results. Further, the ongoing consolidation trend among telecom and cable TV operators may lead to serious financial fluctuation for the company in the to-be reported quarter.
Additionally, the company’s upcoming results face threats from emerging technologies like Voice over WiFi (VoWiFi). Also, American Tower competes fiercely with tower operators like Crown Castle International Corp. (CCI - Free Report) and SBA Communications Corp. (SBAC - Free Report) .
A Key Pick
Here is a company in the Zacks-categorized broader Finance sector - which house American Tower - that has the right combination of elements to post an earnings beat this quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the previous four quarters, with an average positive surprise of 6.45%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
American Tower (AMT) Q1 Earnings: Is a Beat in the Offing?
Leading international wireless tower operator, American Tower Corp. (AMT - Free Report) is slated to report first-quarter 2017 results before the opening bell on Apr 27.
In the last reported fourth quarter of 2016, American Tower posted a positive earnings surprise of 3.52%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 6.82%.
Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that American Toweris likely to beat estimates because it has the right combination of the two key elements.
Zacks ESP: American Tower has an Earnings ESP of +1.33%. This is because the Most Accurate estimate stands at $1.53 while the Zacks Consensus Estimate is pegged lower at $1.51. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with ourEarnings ESP Filter.
Zacks Rank: American Tower has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of American Tower’sfavorableZacks Rank and positive ESP makes us confident of an earnings beat.
American Tower Corporation (REIT) Price and EPS Surprise
American Tower Corporation (REIT) Price and EPS Surprise | American Tower Corporation (REIT) Quote
What is Driving the Better-than-Expected Earnings?
American Tower continues to benefit from increased investment of wireless carriers in 5G networks. Next-generation 4G LTE and 5G networks and increased usage of smartphones and tablets are building up demand for tower leasing. Additionally, the company’s increased investments in Asia are paying off. We expect the benefits to reflect in the upcoming results.
We further believe that American Tower’s tower buyouts in emerging markets will drive its top line and lend it a competitive edge in the to-be reported quarter. American Tower’s Indian, EMEA and Latin American operations account for almost 50% of its organic core revenue growth.
As a result of the $100-million tower lease agreement with U.S. telecom behemoth AT&T Inc. (T), American Tower has also raised its 2017 revenue guidance to a range of $6.31–$6.49 billion from the previous estimate of $6.21–$6.39 billion.
We are also impressed with American Tower Corporation’s efforts to reward its stockholders with a quarterly cash distribution of 62 cents per share on shares of the company’s common stock. The distribution will be paid on Apr 28, 2017 to such stockholders of record at the close of business on Apr 12, 2017.
We believe American Tower’s efforts to drum up its business helped it to outperform the Zacks categorized Reit- Equity Trust Other industry over the past three months. The stock gained over 19.1% compared with the industry’s growth of 4.7% over the same time frame.
On the other hand, high customer concentration, foreign currency exchange rate risks, stiff competition, integration risks, rising operating expenses and a highly leveraged balance sheet are risks to first-quarter results. Further, the ongoing consolidation trend among telecom and cable TV operators may lead to serious financial fluctuation for the company in the to-be reported quarter.
Additionally, the company’s upcoming results face threats from emerging technologies like Voice over WiFi (VoWiFi). Also, American Tower competes fiercely with tower operators like Crown Castle International Corp. (CCI - Free Report) and SBA Communications Corp. (SBAC - Free Report) .
A Key Pick
Here is a company in the Zacks-categorized broader Finance sector - which house American Tower - that has the right combination of elements to post an earnings beat this quarter.
American Financial Group, Inc. (AFG - Free Report) is expected to release first-quarter 2017 results on May 3. The company has an Earnings ESP of +2.19% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s earnings beat the Zacks Consensus Estimate in three of the previous four quarters, with an average positive surprise of 6.45%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>