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American Tower (AMT) Q2 FFO & Revenues Top Estimates, View Up
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American Tower (AMT - Free Report) reported solid results for the second quarter of 2018, wherein the bottom line and revenues surpassed the Zacks Consensus Estimate.
Consolidated adjusted funds from operations (AFFO) came in at $844 million compared with $725 million in the year-ago quarter. AFFO per share came in at $1.90, beating the Zacks Consensus Estimate of $1.78. Further, this compares favorably to FFO of $1.68 per share reported in the prior year.
The company posted total revenues of $1.78 billion, beating the Zacks Consensus Estimate of $1.75 billion. The figure increased 7.2% year over year.
Operating Metrics
Adjusted EBITDA in the reported quarter was $1,084 million, up 6.2% from the prior-year quarter. Adjusted EBITDA margin was 60.9% in the quarter under review. Selling, general, administrative and development expense totaled $157.9 million compared with $153.1 million incurred in the year-earlier quarter. Operating income was $546 million compared with $576.9 million in the year-ago quarter.
Cash Flow and Liquidity
In the second quarter of 2018, American Tower generated $940 million of cash from operations, up 18.2% year over year. Free cash flow in the reported quarter was $712 million, up 21.7% year over year.
At the end of the reported quarter, the company had $834.5 million in cash and cash equivalents and around $18,322 million of outstanding long-term debt compared with $802.1 million and $19,430.3 million, respectively, witnessed at the end of December 2017.
Property Segment
Quarterly revenues grossed $1,749 million, up 6.8% year over year. Operating profit was $1,104 million and operating profit margin was 63% in the April-June quarter.
In the Property segment, revenues from the United States totaled $957 million, up 6.7% year over year. Total international revenues amounted to $792 million, up 7% year over year. Within this, revenues from Asia totaled $308 million, up 4.5% year over year. EMEA revenues grossed $167 million, up 4.4% year over year. Latin America revenues totaled $318 million, up 10.8% year over year.
Services Segment
Quarterly revenues totaled $31.5 million compared with $24.4 million in the year-ago quarter. Operating profit was $16 million and operating profit margin was 50% in the reported quarter.
Cash Dividend Payment
In second-quarter 2018, American Tower’s board of directors announced a cash distribution of 77 cents per share to the common stockholders of record as of the closure of business on Jun 19, paid on Jul 13, 2018.
Outlook for 2018
For 2018, American Tower anticipates property revenues of $6,840 to $6,970 million, reflecting growth of 5.2% at the mid-point. Net income is expected between $1,275 million and $1,335 million, marking growth of 6.5% at the mid-point. Adjusted EBITDA is projected at $4,255-$4,315 million, indicating mid-point growth of 4.8%. Consolidated AFFO is expected in the range of $3,200-$3,260 million, reflecting mid-point growth of 11.3%.
Currently, American Tower carries a Zacks Rank #4 (Sell).
We now look forward to the earnings releases of other REITs like The Macerich Company (MAC - Free Report) , Federal Realty Trust (FRT - Free Report) and Mark Cali Realty . All three companies are scheduled to report their Q2 numbers on Aug 1.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X 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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American Tower (AMT) Q2 FFO & Revenues Top Estimates, View Up
American Tower (AMT - Free Report) reported solid results for the second quarter of 2018, wherein the bottom line and revenues surpassed the Zacks Consensus Estimate.
Consolidated adjusted funds from operations (AFFO) came in at $844 million compared with $725 million in the year-ago quarter. AFFO per share came in at $1.90, beating the Zacks Consensus Estimate of $1.78. Further, this compares favorably to FFO of $1.68 per share reported in the prior year.
The company posted total revenues of $1.78 billion, beating the Zacks Consensus Estimate of $1.75 billion. The figure increased 7.2% year over year.
Operating Metrics
Adjusted EBITDA in the reported quarter was $1,084 million, up 6.2% from the prior-year quarter. Adjusted EBITDA margin was 60.9% in the quarter under review. Selling, general, administrative and development expense totaled $157.9 million compared with $153.1 million incurred in the year-earlier quarter. Operating income was $546 million compared with $576.9 million in the year-ago quarter.
Cash Flow and Liquidity
In the second quarter of 2018, American Tower generated $940 million of cash from operations, up 18.2% year over year. Free cash flow in the reported quarter was $712 million, up 21.7% year over year.
At the end of the reported quarter, the company had $834.5 million in cash and cash equivalents and around $18,322 million of outstanding long-term debt compared with $802.1 million and $19,430.3 million, respectively, witnessed at the end of December 2017.
Property Segment
Quarterly revenues grossed $1,749 million, up 6.8% year over year. Operating profit was $1,104 million and operating profit margin was 63% in the April-June quarter.
In the Property segment, revenues from the United States totaled $957 million, up 6.7% year over year. Total international revenues amounted to $792 million, up 7% year over year. Within this, revenues from Asia totaled $308 million, up 4.5% year over year. EMEA revenues grossed $167 million, up 4.4% year over year. Latin America revenues totaled $318 million, up 10.8% year over year.
Services Segment
Quarterly revenues totaled $31.5 million compared with $24.4 million in the year-ago quarter. Operating profit was $16 million and operating profit margin was 50% in the reported quarter.
Cash Dividend Payment
In second-quarter 2018, American Tower’s board of directors announced a cash distribution of 77 cents per share to the common stockholders of record as of the closure of business on Jun 19, paid on Jul 13, 2018.
Outlook for 2018
For 2018, American Tower anticipates property revenues of $6,840 to $6,970 million, reflecting growth of 5.2% at the mid-point. Net income is expected between $1,275 million and $1,335 million, marking growth of 6.5% at the mid-point. Adjusted EBITDA is projected at $4,255-$4,315 million, indicating mid-point growth of 4.8%. Consolidated AFFO is expected in the range of $3,200-$3,260 million, reflecting mid-point growth of 11.3%.
Currently, American Tower carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Tower Corporation (REIT) Price, Consensus and EPS Surprise
American Tower Corporation (REIT) Price, Consensus and EPS Surprise | American Tower Corporation (REIT) Quote
We now look forward to the earnings releases of other REITs like The Macerich Company (MAC - Free Report) , Federal Realty Trust (FRT - Free Report) and Mark Cali Realty . All three companies are scheduled to report their Q2 numbers on Aug 1.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>