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.
What's in Store for Crown Castle (CCI) This Earnings Season?
Read MoreHide Full Article
Crown Castle International Corp. (CCI - Free Report) is scheduled to release fourth-quarter 2021 and full-year results on Jan 26, after the closing bell. While CCI’s quarterly results are likely to reflect growth in revenues, its funds from operations (FFO) per share might have suffered a decline.
In the last reported quarter, this Houston-based real estate investment trust’s (REIT) adjusted funds from operations (AFFO) per share surpassed the Zacks Consensus Estimate by 2.9%. Growth in site-rental revenues aided the top-line performance.
Over the preceding four quarters, Crown Castle’s FFO per share surpassed estimates on each occasion, the average being 13.3%. This is depicted in the graph below:
Crown Castle International Corporation Price and EPS Surprise
Let’s see how things have shaped up prior to this announcement.
Factors to Note
During the fourth quarter, the tower REITs are likely to have gained from an increase in mobile data usage, spectrum availability and high network investments by wireless carriers to deploy 5G networks. Capitalizing on these, Crown Castle is well poised to grow on its ability to offer a holistic network solution with towers, fiber and small cells.
As the data volume of wireless and wired networks is growing rapidly, the network carriers continue spending more on the network deployments to harness spectrum abilities as well as improve and densify their cell sites and coverage.
A strong and creditworthy tenant base adds resiliency to Crown Castle’s business. CCI has long-term (typically 5-15 years) tower lease agreements with top U.S. carriers and are anticipated to have contributed to recurring site rentals during the December-end quarter. The consensus estimate for net revenues from site rentals is pegged at $1.45 billion for the fourth quarter, suggesting 7.5% growth from the year-ago quarter’s reported figure.
An increased tower activity, backed by other growth drivers, is likely to have driven Crown Castle’s network services revenues during the fourth quarter.
The consensus estimate for net revenues from the network services and other segment is pinned at $166 million for the quarter under review, suggesting a 17.7% jump from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for the fourth-quarter revenues is pegged at $1.63 billion, suggesting an increase of 8.9% from the prior-year quarter’s reported number.
However, prior to the fourth-quarter earnings release, analysts seem pessimistic about CCI’s prospects as the Zacks Consensus Estimate for the quarterly FFO per share has been revised marginally downward to $1.71 over the past 60 days. Further, it calls for a 26.6% decrease from the prior-year quarter’s reported figure.
For the full year, the Zacks Consensus Estimate for FFO per share has been unrevised at $6.89 over the past two months. The figure indicates an 8.1% increase from the year-earlier reported figure on revenues of $6.31 billion.
Here is what our quantitative model predicts:
Our proven model does not conclusively predict a FFO beat for Crown Castle this time around. The right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher —increases the odds of a FFO beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Crown Castle has an Earnings ESP of 0.00%.
Here are some stocks like Boston Properties (BXP - Free Report) , EastGroup Properties (EGP - Free Report) and Highwoods Properties (HIW - Free Report) which are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Boston Properties, slated to release fourth-quarter earnings on Jan 25, has an Earnings ESP of +0.37% and a Zacks Rank of 3 at present.
EastGroup Properties, scheduled to report quarterly figures on Feb 8, has an Earnings ESP of +0.32% and a Zacks Rank of 2, currently.
Highwoods Properties, slated to release fourth-quarter earnings on Feb 8, has an Earnings ESP of +2.67% and a Zacks Rank of 3 at present.
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.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in Store for Crown Castle (CCI) This Earnings Season?
Crown Castle International Corp. (CCI - Free Report) is scheduled to release fourth-quarter 2021 and full-year results on Jan 26, after the closing bell. While CCI’s quarterly results are likely to reflect growth in revenues, its funds from operations (FFO) per share might have suffered a decline.
In the last reported quarter, this Houston-based real estate investment trust’s (REIT) adjusted funds from operations (AFFO) per share surpassed the Zacks Consensus Estimate by 2.9%. Growth in site-rental revenues aided the top-line performance.
Over the preceding four quarters, Crown Castle’s FFO per share surpassed estimates on each occasion, the average being 13.3%. This is depicted in the graph below:
Crown Castle International Corporation Price and EPS Surprise
Crown Castle International Corporation price-eps-surprise | Crown Castle International Corporation Quote
Let’s see how things have shaped up prior to this announcement.
Factors to Note
During the fourth quarter, the tower REITs are likely to have gained from an increase in mobile data usage, spectrum availability and high network investments by wireless carriers to deploy 5G networks. Capitalizing on these, Crown Castle is well poised to grow on its ability to offer a holistic network solution with towers, fiber and small cells.
As the data volume of wireless and wired networks is growing rapidly, the network carriers continue spending more on the network deployments to harness spectrum abilities as well as improve and densify their cell sites and coverage.
A strong and creditworthy tenant base adds resiliency to Crown Castle’s business. CCI has long-term (typically 5-15 years) tower lease agreements with top U.S. carriers and are anticipated to have contributed to recurring site rentals during the December-end quarter. The consensus estimate for net revenues from site rentals is pegged at $1.45 billion for the fourth quarter, suggesting 7.5% growth from the year-ago quarter’s reported figure.
An increased tower activity, backed by other growth drivers, is likely to have driven Crown Castle’s network services revenues during the fourth quarter.
The consensus estimate for net revenues from the network services and other segment is pinned at $166 million for the quarter under review, suggesting a 17.7% jump from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for the fourth-quarter revenues is pegged at $1.63 billion, suggesting an increase of 8.9% from the prior-year quarter’s reported number.
However, prior to the fourth-quarter earnings release, analysts seem pessimistic about CCI’s prospects as the Zacks Consensus Estimate for the quarterly FFO per share has been revised marginally downward to $1.71 over the past 60 days. Further, it calls for a 26.6% decrease from the prior-year quarter’s reported figure.
For the full year, the Zacks Consensus Estimate for FFO per share has been unrevised at $6.89 over the past two months. The figure indicates an 8.1% increase from the year-earlier reported figure on revenues of $6.31 billion.
Here is what our quantitative model predicts:
Our proven model does not conclusively predict a FFO beat for Crown Castle this time around. The right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher —increases the odds of a FFO beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Crown Castle has an Earnings ESP of 0.00%.
Zacks Rank: Crown Castle currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Here are some stocks like Boston Properties (BXP - Free Report) , EastGroup Properties (EGP - Free Report) and Highwoods Properties (HIW - Free Report) which are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Boston Properties, slated to release fourth-quarter earnings on Jan 25, has an Earnings ESP of +0.37% and a Zacks Rank of 3 at present.
EastGroup Properties, scheduled to report quarterly figures on Feb 8, has an Earnings ESP of +0.32% and a Zacks Rank of 2, currently.
Highwoods Properties, slated to release fourth-quarter earnings on Feb 8, has an Earnings ESP of +2.67% and a Zacks Rank of 3 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.