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American Tower (AMT) Tops Q1 Earnings and Revenue

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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). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. American Tower has generated a negative average earnings surprise of 6.82% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:  American Tower reported first-quarter 2017 adjusted AFFO per share of $1.58. This figure is higher than the Zacks Consensus Estimate of $1.51. Investors should note that these figures take out stock option expenses.

Revenue:  Quarterly total revenue of $1,616 million also surpassed the Zacks Consensus Estimate of $1,569 million. 

Key Stats to Note:  In the property segment, the company’s core growth was 25.7% in the first quarter of 2017.

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

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