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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 second-quarter 2022 results on Jul 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 3.89%. The growth in site-rental revenues amid elevated tower space demand aided the top line, partially offset by rising operating expenses.
Over the preceding four quarters, CCI’s FFO per share surpassed estimates on each occasion, the average being 3.33%. This is depicted in the graph below:
Crown Castle International Corporation Price and EPS Surprise
An increase in mobile data usage, spectrum availability and high network investments by wireless carriers to deploy 5G networks are likely to have benefited tower REITs in the second quarter.
Crown Castle’s unmatched portfolio of towers and investments in fiber and small cell business is expected to have supported its growth in the second quarter. To harness spectrum abilities and improve and densify their cell sites and coverage amid the rapidly growing data volume of wireless and wired networks, network carriers are likely to have continued spending on network deployments. This, in turn, is expected to have resulted in solid demand for the company’s properties.
Moreover, a strong and creditworthy tenant base adds resiliency to Crown Castle’s business. CCI’s site rental revenues for the second quarter are expected to have benefited from the company’s long-term lease agreements (typically five to 15 years) with top U.S. carriers. This ensures a steady and recurring revenue generation for the company.
The consensus estimate for net revenues from site rentals is pegged at $1.55 billion for the second quarter, suggesting 8.8% growth from the year-ago quarter’s reported figure.
The consensus estimate for net revenues from the network services and other segment stands at $166 million for the second quarter, implying a jump of 5.1% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.71 billion, indicating an increase of 8.2%.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at $1.79 over the past week. However, it suggests a 4.7% increase from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a 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 -0.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks 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 (SBAC - Free Report) is slated to release second-quarter earnings on Aug 1. SBAC has an Earnings ESP of +1.40% and a Zacks Rank of 3 at present.
Essex Property Trust (ESS - Free Report) is scheduled to report quarterly figures on Jul 26. ESS has an Earnings ESP of +0.81% and a Zacks Rank of 2 (Buy) currently.
Equity Residential (EQR - Free Report) is slated to report quarterly numbers on Jul 26. EQR has an Earnings ESP of +1.11% 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 Crown Castle (CCI) This Earnings Season?
Crown Castle International Corp. (CCI - Free Report) is scheduled to release second-quarter 2022 results on Jul 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 3.89%. The growth in site-rental revenues amid elevated tower space demand aided the top line, partially offset by rising operating expenses.
Over the preceding four quarters, CCI’s FFO per share surpassed estimates on each occasion, the average being 3.33%. 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
Factors to Note
An increase in mobile data usage, spectrum availability and high network investments by wireless carriers to deploy 5G networks are likely to have benefited tower REITs in the second quarter.
Crown Castle’s unmatched portfolio of towers and investments in fiber and small cell business is expected to have supported its growth in the second quarter. To harness spectrum abilities and improve and densify their cell sites and coverage amid the rapidly growing data volume of wireless and wired networks, network carriers are likely to have continued spending on network deployments. This, in turn, is expected to have resulted in solid demand for the company’s properties.
Moreover, a strong and creditworthy tenant base adds resiliency to Crown Castle’s business. CCI’s site rental revenues for the second quarter are expected to have benefited from the company’s long-term lease agreements (typically five to 15 years) with top U.S. carriers. This ensures a steady and recurring revenue generation for the company.
The consensus estimate for net revenues from site rentals is pegged at $1.55 billion for the second quarter, suggesting 8.8% growth from the year-ago quarter’s reported figure.
The consensus estimate for net revenues from the network services and other segment stands at $166 million for the second quarter, implying a jump of 5.1% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.71 billion, indicating an increase of 8.2%.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at $1.79 over the past week. However, it suggests a 4.7% increase from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a 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 -0.37%. 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 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 (SBAC - Free Report) is slated to release second-quarter earnings on Aug 1. SBAC has an Earnings ESP of +1.40% and a Zacks Rank of 3 at present.
Essex Property Trust (ESS - Free Report) is scheduled to report quarterly figures on Jul 26. ESS has an Earnings ESP of +0.81% and a Zacks Rank of 2 (Buy) currently.
Equity Residential (EQR - Free Report) is slated to report quarterly numbers on Jul 26. EQR has an Earnings ESP of +1.11% 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.