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Leading wireless communication tower operator Crown Castle International Corp. (CCI - Free Report) , reported mixed results for the third quarter of 2017. While the company’s bottom line surpassed the Zacks Consensus Estimate, the top line lagged the same.
Net Income
Crown Castle reported quarterly earnings per share of $1.15 beating the Zacks Consensus Estimate of $1.10. GAAP net income (loss) came at $115.2 million, up 17% year over year.
Crown Castle International Corporation Price, Consensus and EPS Surprise
Total revenues in the third quarter increased 7.2% year over year to $1,063.24 million as against the Zacks Consensus Estimate of $1,067.6 million. Site Rental Segment quarterly revenues were $892.76 million, up 10% year over year. Network Services Segment quarterly revenues were $170.48 million, down 5.3% year over year.
Operating Metrics
Quarterly operating income came in at $260.6 million compared with $244.3 in the year-ago quarter. Total operating expenses rose to $802.7 million from $747.8 million in the year-ago quarter. Quarterly adjusted EBITDA was approximately $604.8 million, representing a year-over-year increase of 7.2%.
Cash Flow
As of Sep 30, 2017, Crown Castle generated $1,417.3 million of cash from operating activities compared with $1,304.7 million in the year-ago period.
Balance Sheet
At the end of third quarter of 2017, Crown Castle had cash and cash equivalents of approximately $6,719.13 million on its balance sheet compared with $567.6 million at the end of December 2016. At the end of the third quarter of 2017, debt and other long-term obligations totaled approximately $15,090.22 million, up from $12,069.39 million at the end of 2016.
Dividend Hike
Crown Castle's board of directors declared a quarterly cash dividend of $1.05 per common share, representing an increase of approximately 11% over the prior-quarter figure of 95 cents per share. The quarterly dividend will be paid on Dec 29, 2017 to common stockholders of record at the closure of business on Dec 15, 2017. Future dividends are subject to the approval of Crown Castle's management.
Fourth-Quarter 2017 Outlook
For the fourth quarter of 2017, Crown Castle expects Site Rental revenues in the range of $904-$999 million. Site Rental cost of operation is projected in the band of $281-$286 million. Adjusted EBITDA is anticipated between $624 million and $629 million. Interest expense (inclusive of amortization) is estimated to be $159-$164 million. Meanwhile, FFO (funds flow from operation) is anticipated in the $376-$381 million band. AFFO (adjusted FFO) is projected in the $430-$435 million range, while net income is projected in the range of $91-$116 million.
Full-Year 2017 Outlook
Crown Castle has raised its 2017 outlook. The company expects Site Rental revenues in the range of $3,522-$3,527 million. Site Rental cost of operation is projected in the $1,096-$1,101 million band. Adjusted EBITDA is anticipated between $2,399 million and $2,404 million. Interest expense (inclusive of amortization) is estimated in the $590-$595 million range. FFO is expected around $1,590-$1,595 million. AFFO is expected around $1,779-$1,784 million. Net income is anticipated in the $438-$463 million range.
Full-Year 2018 Outlook
For the full-year 2018, the company expects Site Rental revenues in the range of $4,546-$4,591 million. Site Rental cost of operation is projected in the $1,360-$1,405 million band. Adjusted EBITDA is anticipated between $3,013 million and $3,058 million. Interest expense (inclusive of amortization) is estimated in the $644-$689 million range. FFO is expected to be around $1,910-$1,955 million. AFFO is expected between $2,219 million and $2,264 million. Net income is anticipated between $515 million and $595 million.
Deterrents
Crown Castle operates in a consolidated wireless industry which is a major a concern. Further, new technologies compete out the demand for site leases. Also, the top four industry players, namely, Verizon Wireless, AT&T Inc. (T - Free Report) , Sprint Corp. (S - Free Report) , and T-Mobile US Inc (TMUS - Free Report) , account for the majority of its total revenues. Loss of any of these customers or consolidation among them will significantly affect the company’s top line. We believe that it is probably due to these headwinds the company presently carries a Zacks Rank #4 (Sell).
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Crown Castle (CCI) Beats Q3 Earnings, Lags Revenues Estimates
Leading wireless communication tower operator Crown Castle International Corp. (CCI - Free Report) , reported mixed results for the third quarter of 2017. While the company’s bottom line surpassed the Zacks Consensus Estimate, the top line lagged the same.
Net Income
Crown Castle reported quarterly earnings per share of $1.15 beating the Zacks Consensus Estimate of $1.10. GAAP net income (loss) came at $115.2 million, up 17% year over year.
Crown Castle International Corporation Price, Consensus and EPS Surprise
Crown Castle International Corporation Price, Consensus and EPS Surprise | Crown Castle International Corporation Quote
Revenues
Total revenues in the third quarter increased 7.2% year over year to $1,063.24 million as against the Zacks Consensus Estimate of $1,067.6 million. Site Rental Segment quarterly revenues were $892.76 million, up 10% year over year. Network Services Segment quarterly revenues were $170.48 million, down 5.3% year over year.
Operating Metrics
Quarterly operating income came in at $260.6 million compared with $244.3 in the year-ago quarter. Total operating expenses rose to $802.7 million from $747.8 million in the year-ago quarter. Quarterly adjusted EBITDA was approximately $604.8 million, representing a year-over-year increase of 7.2%.
Cash Flow
As of Sep 30, 2017, Crown Castle generated $1,417.3 million of cash from operating activities compared with $1,304.7 million in the year-ago period.
Balance Sheet
At the end of third quarter of 2017, Crown Castle had cash and cash equivalents of approximately $6,719.13 million on its balance sheet compared with $567.6 million at the end of December 2016. At the end of the third quarter of 2017, debt and other long-term obligations totaled approximately $15,090.22 million, up from $12,069.39 million at the end of 2016.
Dividend Hike
Crown Castle's board of directors declared a quarterly cash dividend of $1.05 per common share, representing an increase of approximately 11% over the prior-quarter figure of 95 cents per share. The quarterly dividend will be paid on Dec 29, 2017 to common stockholders of record at the closure of business on Dec 15, 2017. Future dividends are subject to the approval of Crown Castle's management.
Fourth-Quarter 2017 Outlook
For the fourth quarter of 2017, Crown Castle expects Site Rental revenues in the range of $904-$999 million. Site Rental cost of operation is projected in the band of $281-$286 million. Adjusted EBITDA is anticipated between $624 million and $629 million. Interest expense (inclusive of amortization) is estimated to be $159-$164 million. Meanwhile, FFO (funds flow from operation) is anticipated in the $376-$381 million band. AFFO (adjusted FFO) is projected in the $430-$435 million range, while net income is projected in the range of $91-$116 million.
Full-Year 2017 Outlook
Crown Castle has raised its 2017 outlook. The company expects Site Rental revenues in the range of $3,522-$3,527 million. Site Rental cost of operation is projected in the $1,096-$1,101 million band. Adjusted EBITDA is anticipated between $2,399 million and $2,404 million. Interest expense (inclusive of amortization) is estimated in the $590-$595 million range. FFO is expected around $1,590-$1,595 million. AFFO is expected around $1,779-$1,784 million. Net income is anticipated in the $438-$463 million range.
Full-Year 2018 Outlook
For the full-year 2018, the company expects Site Rental revenues in the range of $4,546-$4,591 million. Site Rental cost of operation is projected in the $1,360-$1,405 million band. Adjusted EBITDA is anticipated between $3,013 million and $3,058 million. Interest expense (inclusive of amortization) is estimated in the $644-$689 million range. FFO is expected to be around $1,910-$1,955 million. AFFO is expected between $2,219 million and $2,264 million. Net income is anticipated between $515 million and $595 million.
Deterrents
Crown Castle operates in a consolidated wireless industry which is a major a concern. Further, new technologies compete out the demand for site leases. Also, the top four industry players, namely, Verizon Wireless, AT&T Inc. (T - Free Report) , Sprint Corp. (S - Free Report) , and T-Mobile US Inc (TMUS - Free Report) , account for the majority of its total revenues. Loss of any of these customers or consolidation among them will significantly affect the company’s top line. We believe that it is probably due to these headwinds the company presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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