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The price performance of Crown Castle was impressive over the last three months. The stock added 10.54%, outshining the Zacks categorized REIT- Equity Trust Other industry’s loss of 0.06% over the same time frame.
Crown Castle’s extensive tower portfolio, increased demand for infrastructure, strong business outlook, healthy leasing activity, continued acquisition of towers and growing demand for mobile broadband have acted as major positives for the company’s expansion prospects. Wireless services are gaining ground based on technological advancements and network upgrade.
Much of the infrastructure and upgrades require effective site management. Crown Castle addresses this opportunity as over 90% of its quarterly revenues come from wireless service providers like Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) . The company has acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
The deployment of 5G network should also drive growth on the company’s tower and small cell assets as the wireless carriers look to expand and enhance their networks.
We look forward to see how Crown Castle’s ongoing efforts to reposition itself from being a tower company to a fiber provider (focused on the small cell opportunity) through the purchase of several fiber operators will influence its upcoming quarterly results. In Apr 2017, Crown Castle inked a deal to acquire privately-held Wilcon Holdings LLC (Wilcon) for approximately $600 million from Pamlico Capital and other unit holders of Wilcon. On the completion of the proposed acquisition, Crown Castle will attain ownership rights of over 28,000 route miles of fiber.
Notably, the company has raised its outlook for 2017. And expects Site Rental revenues in the range of $3,473–$3,503 million. Site Rental cost of operation is projected in the $1,071–$1,101 million band. Site Rental gross margin is expected between $2,387 million and $2,417 million. Adjusted EBITDA is anticipated between $2,372 million and $2,402 million. Interest expense (inclusive of amortization) is estimated in the $542–$572 million range. FFO is projected at $1,623 –$1,653 million. AFFO is expected between $1,805 million and $1,835 million. Net income is anticipated between $427 million and $477 million.
We are also impressed with Crown Castle’s continued efforts to reward its shareholders with a quarterly cash dividend of 95 cents per common share, which will be paid on Jun 30, 2017 to common stockholders of record at the close of business on Jun 16, 2017.
On the other hand, Crown Castle’s continuous operation in a consolidated wireless industry has reduced demand for cell tower deployment and is therefore expected to dent Crown Castle’s top line considerably. New technologies have reduced demand for site leases.
Owing to its expansive international presence, Crown Castle remains exposed to foreign currency exchange rate risks. Additionally, volatility of the U.S. dollar and Australian dollar exchange rates may result in fluctuating future revenue trends, owing to the company’s significant presence in Australia. High customer concentration is remains a concern for the company.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Here's Why You Should Hold Crown Castle International (CCI)
On May 29, 2017, we issued an updated research report on Crown Castle International Corp. (CCI - Free Report) , a leading wireless communication tower operator in the U.S. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The price performance of Crown Castle was impressive over the last three months. The stock added 10.54%, outshining the Zacks categorized REIT- Equity Trust Other industry’s loss of 0.06% over the same time frame.
Crown Castle’s extensive tower portfolio, increased demand for infrastructure, strong business outlook, healthy leasing activity, continued acquisition of towers and growing demand for mobile broadband have acted as major positives for the company’s expansion prospects. Wireless services are gaining ground based on technological advancements and network upgrade.
Much of the infrastructure and upgrades require effective site management. Crown Castle addresses this opportunity as over 90% of its quarterly revenues come from wireless service providers like Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) . The company has acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
The deployment of 5G network should also drive growth on the company’s tower and small cell assets as the wireless carriers look to expand and enhance their networks.
We look forward to see how Crown Castle’s ongoing efforts to reposition itself from being a tower company to a fiber provider (focused on the small cell opportunity) through the purchase of several fiber operators will influence its upcoming quarterly results. In Apr 2017, Crown Castle inked a deal to acquire privately-held Wilcon Holdings LLC (Wilcon) for approximately $600 million from Pamlico Capital and other unit holders of Wilcon. On the completion of the proposed acquisition, Crown Castle will attain ownership rights of over 28,000 route miles of fiber.
Notably, the company has raised its outlook for 2017. And expects Site Rental revenues in the range of $3,473–$3,503 million. Site Rental cost of operation is projected in the $1,071–$1,101 million band. Site Rental gross margin is expected between $2,387 million and $2,417 million. Adjusted EBITDA is anticipated between $2,372 million and $2,402 million. Interest expense (inclusive of amortization) is estimated in the $542–$572 million range. FFO is projected at $1,623 –$1,653 million. AFFO is expected between $1,805 million and $1,835 million. Net income is anticipated between $427 million and $477 million.
We are also impressed with Crown Castle’s continued efforts to reward its shareholders with a quarterly cash dividend of 95 cents per common share, which will be paid on Jun 30, 2017 to common stockholders of record at the close of business on Jun 16, 2017.
On the other hand, Crown Castle’s continuous operation in a consolidated wireless industry has reduced demand for cell tower deployment and is therefore expected to dent Crown Castle’s top line considerably. New technologies have reduced demand for site leases.
Owing to its expansive international presence, Crown Castle remains exposed to foreign currency exchange rate risks. Additionally, volatility of the U.S. dollar and Australian dollar exchange rates may result in fluctuating future revenue trends, owing to the company’s significant presence in Australia. High customer concentration is remains a concern for the company.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>