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What's in Store for Crown Castle (CCI) This Earnings Season?
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Crown Castle International Corp. (CCI - Free Report) is scheduled to release first-quarter 2022 results on Apr 20 after the closing bell. Crown Castle’s quarterly results are likely to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Houston, TX-based real estate investment trust’s (REIT) adjusted funds from operations per share surpassed the Zacks Consensus Estimate by 3.51%. The growth in site-rental revenues amid elevated tower space demand aided the top line.
Over the preceding four quarters, CCI’s FFO per share surpassed estimates on each occasion, the average being 3.91%. This is depicted in the graph below:
Crown Castle International Corporation Price and EPS Surprise
Let’s see how things have shaped up before this announcement.
Factors to Note
In the first quarter, tower REITs are likely to have benefited 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. With the data volume of wireless and wired networks growing rapidly, network carriers are expected to have continued spending more on network deployments to harness spectrum abilities and improve and densify their cell sites and coverage.
Moreover, a strong and creditworthy tenant base adds resiliency to Crown Castle’s business. CCI has long-term (typically five to 15 years) tower lease agreements with top U.S. carriers, which are anticipated to have contributed to the recurring site rentals during the March-end quarter.
The consensus estimate for net revenues from site rentals is pegged at $1.535 billion for the first quarter, suggesting 12.1% growth from the year-ago quarter’s reported figure.
The increased tower activity, backed by other growth drivers, is likely to have driven Crown Castle’s network services revenues during the first quarter.
The consensus estimate for net revenues from the network services and other segment stands at $158 million for the quarter under review, suggesting a 36.2% jump from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.69 billion, suggesting an increase of 13.98% from the prior-year quarter’s reported number.
However, before the first-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 $1.79 over the past week. However, it calls for a 4.7% increase from the prior-year quarter’s reported figure.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict an FFO beat for Crown Castle this time. The right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher —increases the odds of an FFO beat. However, that is not the case here.
Earnings ESP: Crown Castle has an Earnings ESP of -0.72%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks like SBA Communications Corporation (SBAC - Free Report) , SL Green Realty Corp. (SLG - Free Report) and Alexandria Real Estate Equities, Inc. (ARE - Free Report) that 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:
SBA Communications, slated to release first-quarter earnings on Apr 25, has an Earnings ESP of +1.97% and a Zacks Rank of 3 at present.
SL Green, scheduled to report quarterly figures on Apr 20, has an Earnings ESP of +1.04% and a Zacks Rank of 3 currently.
Alexandria Real Estate Equities, slated to report quarterly numbers on Apr 25, has an Earnings ESP of +0.25% and carries a Zacks Rank of 2 (Buy).
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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What's in Store for Crown Castle (CCI) This Earnings Season?
Crown Castle International Corp. (CCI - Free Report) is scheduled to release first-quarter 2022 results on Apr 20 after the closing bell. Crown Castle’s quarterly results are likely to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Houston, TX-based real estate investment trust’s (REIT) adjusted funds from operations per share surpassed the Zacks Consensus Estimate by 3.51%. The growth in site-rental revenues amid elevated tower space demand aided the top line.
Over the preceding four quarters, CCI’s FFO per share surpassed estimates on each occasion, the average being 3.91%. 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 before this announcement.
Factors to Note
In the first quarter, tower REITs are likely to have benefited 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. With the data volume of wireless and wired networks growing rapidly, network carriers are expected to have continued spending more on network deployments to harness spectrum abilities and improve and densify their cell sites and coverage.
Moreover, a strong and creditworthy tenant base adds resiliency to Crown Castle’s business. CCI has long-term (typically five to 15 years) tower lease agreements with top U.S. carriers, which are anticipated to have contributed to the recurring site rentals during the March-end quarter.
The consensus estimate for net revenues from site rentals is pegged at $1.535 billion for the first quarter, suggesting 12.1% growth from the year-ago quarter’s reported figure.
The increased tower activity, backed by other growth drivers, is likely to have driven Crown Castle’s network services revenues during the first quarter.
The consensus estimate for net revenues from the network services and other segment stands at $158 million for the quarter under review, suggesting a 36.2% jump from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.69 billion, suggesting an increase of 13.98% from the prior-year quarter’s reported number.
However, before the first-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 $1.79 over the past week. However, it calls for a 4.7% increase from the prior-year quarter’s reported figure.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict an FFO beat for Crown Castle this time. The right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher —increases the odds of an FFO beat. However, that is not the case here.
Earnings ESP: Crown Castle has an Earnings ESP of -0.72%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Crown Castle currently carries a Zacks Rank #3. 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 SBA Communications Corporation (SBAC - Free Report) , SL Green Realty Corp. (SLG - Free Report) and Alexandria Real Estate Equities, Inc. (ARE - Free Report) that 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:
SBA Communications, slated to release first-quarter earnings on Apr 25, has an Earnings ESP of +1.97% and a Zacks Rank of 3 at present.
SL Green, scheduled to report quarterly figures on Apr 20, has an Earnings ESP of +1.04% and a Zacks Rank of 3 currently.
Alexandria Real Estate Equities, slated to report quarterly numbers on Apr 25, has an Earnings ESP of +0.25% and carries a Zacks Rank of 2 (Buy).
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.