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What's in Store for American Tower (AMT) This Earnings Season?
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American Tower Corporation (AMT - Free Report) is scheduled to release first-quarter 2022 results before the opening bell on Apr 27. The company’s results are likely to highlight year-over-year growth in revenues and funds from operations (FFO) per share.
In the last quarter, the operator of wireless communication towers surpassed adjusted funds from operations per share estimates by 0.46%. The quarterly results reflected an improvement in revenues across the Property and Service operations.
Over the preceding four quarters, American Tower topped the FFO per share estimate on each occasion, the average beat being 4.20%. The graph below depicts this surprise history:
Let’s see how things have shaped up before this announcement.
Factors to Note
American Tower is likely to have benefited from secular growth trends in the wireless industry during the first quarter. As the data volume for wireless and wired networks has been growing rapidly amid the widespread adoption of smartphones and applications, network carriers continue to spend on network deployments to harness spectrum abilities and improve and densify their cell sites and coverage.
As for AMT, the company’s unmatched geographically diversified portfolio of distributed sites has been attracting businesses from carriers seeking network expansion and densification amid the growing mobile data scenario.
The company has been ramping up its investments in the international market and fortifying the global footprint through acquisitions and developments. Moreover, in December, American Tower announced the completion of the acquisition of CoreSite Realty Corporation. Such expansion efforts have helped AMT scale its presence and are anticipated to have aided during the soon-to-be-reported quarter.
The Zacks Consensus Estimate for operating revenues from the Property segment is pegged at $2.5 billion, indicating growth from $2.4 billion in the prior-year quarter and $2.13 billion in the year-ago period.
However, the Zacks Consensus Estimate for operating revenues from the Service segment is pegged at $59 million, indicating a decline from $67 million in the prior quarter but a rise from $29 million in the year-ago period.
The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $2.60 billion, indicating a rise of 20.2% from the year-earlier period.
American Tower’s financial position and liquidity are expected to have been strong during the quarter under review.
Before the first-quarter earnings release, American Tower’s activities were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has been revised 1.6% upward to $2.54 over the past month. Also, it suggests a year-over-year increase of 3.25%.
Tower operations in the emerging markets are not as profitable as in the mature U.S. markets. Operating profit margins from international businesses might have been less compared with the U.S. segment. Moreover, the elevated churn in certain markets where the company operates is expected to have been a deterrent.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict an FFO beat for AMT this time. The right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of an FFO beat. However, that is not the case here.
Earnings ESP: American Tower has an Earnings ESP of -0.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks like Public Storage (PSA - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) and Cousins Properties Incorporated (CUZ - 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:
Public Storage, slated to release first-quarter earnings on May 3, has an Earnings ESP of +0.50% and a Zacks Rank of 2 (Buy) at present.
Host Hotels & Resorts, scheduled to report quarterly figures on May 4, has an Earnings ESP of +4.07% and a Zacks Rank of 1 currently.
Cousins Properties Incorporated, slated to report quarterly numbers on Apr 28, has an Earnings ESP of +0.50% and carries a Zacks Rank of 3.
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 American Tower (AMT) This Earnings Season?
American Tower Corporation (AMT - Free Report) is scheduled to release first-quarter 2022 results before the opening bell on Apr 27. The company’s results are likely to highlight year-over-year growth in revenues and funds from operations (FFO) per share.
In the last quarter, the operator of wireless communication towers surpassed adjusted funds from operations per share estimates by 0.46%. The quarterly results reflected an improvement in revenues across the Property and Service operations.
Over the preceding four quarters, American Tower topped the FFO per share estimate on each occasion, the average beat being 4.20%. The graph below depicts this surprise history:
American Tower Corporation Price and EPS Surprise
American Tower Corporation price-eps-surprise | American Tower Corporation Quote
Let’s see how things have shaped up before this announcement.
Factors to Note
American Tower is likely to have benefited from secular growth trends in the wireless industry during the first quarter. As the data volume for wireless and wired networks has been growing rapidly amid the widespread adoption of smartphones and applications, network carriers continue to spend on network deployments to harness spectrum abilities and improve and densify their cell sites and coverage.
As for AMT, the company’s unmatched geographically diversified portfolio of distributed sites has been attracting businesses from carriers seeking network expansion and densification amid the growing mobile data scenario.
The company has been ramping up its investments in the international market and fortifying the global footprint through acquisitions and developments. Moreover, in December, American Tower announced the completion of the acquisition of CoreSite Realty Corporation. Such expansion efforts have helped AMT scale its presence and are anticipated to have aided during the soon-to-be-reported quarter.
The Zacks Consensus Estimate for operating revenues from the Property segment is pegged at $2.5 billion, indicating growth from $2.4 billion in the prior-year quarter and $2.13 billion in the year-ago period.
However, the Zacks Consensus Estimate for operating revenues from the Service segment is pegged at $59 million, indicating a decline from $67 million in the prior quarter but a rise from $29 million in the year-ago period.
The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $2.60 billion, indicating a rise of 20.2% from the year-earlier period.
American Tower’s financial position and liquidity are expected to have been strong during the quarter under review.
Before the first-quarter earnings release, American Tower’s activities were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has been revised 1.6% upward to $2.54 over the past month. Also, it suggests a year-over-year increase of 3.25%.
Tower operations in the emerging markets are not as profitable as in the mature U.S. markets. Operating profit margins from international businesses might have been less compared with the U.S. segment. Moreover, the elevated churn in certain markets where the company operates is expected to have been a deterrent.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict an FFO beat for AMT this time. The right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of an FFO beat. However, that is not the case here.
Earnings ESP: American Tower has an Earnings ESP of -0.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Tower currently carries a Zacks Rank of 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 Public Storage (PSA - Free Report) , Host Hotels & Resorts, Inc. (HST - Free Report) and Cousins Properties Incorporated (CUZ - 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:
Public Storage, slated to release first-quarter earnings on May 3, has an Earnings ESP of +0.50% and a Zacks Rank of 2 (Buy) at present.
Host Hotels & Resorts, scheduled to report quarterly figures on May 4, has an Earnings ESP of +4.07% and a Zacks Rank of 1 currently.
Cousins Properties Incorporated, slated to report quarterly numbers on Apr 28, has an Earnings ESP of +0.50% and carries a Zacks Rank of 3.
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.