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Crown Castle (CCI) to Post Q3 Earnings: What's in the Cards?
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Crown Castle Inc. (CCI - Free Report) is scheduled to release third-quarter 2022 results on Oct 19 after the closing bell. Its 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 FFO per share surpassed the Zacks Consensus Estimate by a cent. The growth in site-rental revenues due to 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 2.72%. This is depicted in the graph below:
The advancement in mobile technology, such as the 5G network, and the proliferation of bandwidth-intensive applications have driven the growth in mobile data usage globally. Also, rampant usage of network-intensive applications for video conferencing and cloud services, and remote-working scenarios have fueled the rise.
This has resulted in wireless service providers and carriers expanding their networks and deploying additional equipment for existing networks to boost their network coverage and capacity to meet the rising consumer demand. This upbeat trend is likely to have driven the demand for Crown Castle’s unmatched portfolio of towers and investments in fiber and small cell business during third-quarter 2022.
Crown Castle has a strong and creditworthy tenant base that adds resiliency to its business and assures stable revenues for the company. Its long-term lease agreements (typically five to 15 years) with the top United States carriers are anticipated to have aided CCI’s site rental revenues for the third quarter.
Further, in all likelihood, the company’s solid balance-sheet strength is expected to have supported its expansion efforts to establish small cells required to increase the capacity and density of the wireless network for 5G deployment during the to-be-reported quarter.
The consensus estimate for net revenues from site rentals is pegged at $1.57 billion for the third quarter, indicating 7.9% growth from the year-ago quarter’s reported figure.
The consensus estimate for net revenues from the network services and other segment stands at $172 million for the third quarter, implying a rise of 2.9% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.74 billion, indicating an increase of 7.3% year over year.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at $1.83 over the past month. However, it suggests a 3.4% increase from the prior-year quarter’s reported figure.
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 a beat. However, that is not the case here.
Earnings ESP: Crown Castle has an Earnings ESP of -1.37%. 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:
Highwoods Properties (HIW - Free Report) is slated to report quarterly numbers on Oct 25. HIW has an Earnings ESP of +1.45% and carries a Zacks Rank #3 presently.
Cousins Properties (CUZ - Free Report) is slated to release third-quarter earnings on Oct 27. CUZ has an Earnings ESP of +1.01% and a Zacks Rank of 3 at present.
Public Storage (PSA - Free Report) is scheduled to report quarterly figures on Nov 1. PSA has an Earnings ESP of +1.34% and a Zacks Rank of 2 (Buy) currently.
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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Crown Castle (CCI) to Post Q3 Earnings: What's in the Cards?
Crown Castle Inc. (CCI - Free Report) is scheduled to release third-quarter 2022 results on Oct 19 after the closing bell. Its 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 FFO per share surpassed the Zacks Consensus Estimate by a cent. The growth in site-rental revenues due to 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 2.72%. This is depicted in the graph below:
Crown Castle Inc. Price and EPS Surprise
Crown Castle Inc. price-eps-surprise | Crown Castle Inc. Quote
Factors to Note
The advancement in mobile technology, such as the 5G network, and the proliferation of bandwidth-intensive applications have driven the growth in mobile data usage globally. Also, rampant usage of network-intensive applications for video conferencing and cloud services, and remote-working scenarios have fueled the rise.
This has resulted in wireless service providers and carriers expanding their networks and deploying additional equipment for existing networks to boost their network coverage and capacity to meet the rising consumer demand. This upbeat trend is likely to have driven the demand for Crown Castle’s unmatched portfolio of towers and investments in fiber and small cell business during third-quarter 2022.
Crown Castle has a strong and creditworthy tenant base that adds resiliency to its business and assures stable revenues for the company. Its long-term lease agreements (typically five to 15 years) with the top United States carriers are anticipated to have aided CCI’s site rental revenues for the third quarter.
Further, in all likelihood, the company’s solid balance-sheet strength is expected to have supported its expansion efforts to establish small cells required to increase the capacity and density of the wireless network for 5G deployment during the to-be-reported quarter.
The consensus estimate for net revenues from site rentals is pegged at $1.57 billion for the third quarter, indicating 7.9% growth from the year-ago quarter’s reported figure.
The consensus estimate for net revenues from the network services and other segment stands at $172 million for the third quarter, implying a rise of 2.9% from the year-ago reported figure.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.74 billion, indicating an increase of 7.3% year over year.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at $1.83 over the past month. However, it suggests a 3.4% increase from the prior-year quarter’s reported figure.
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 a beat. However, that is not the case here.
Earnings ESP: Crown Castle has an Earnings ESP of -1.37%. 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 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 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:
Highwoods Properties (HIW - Free Report) is slated to report quarterly numbers on Oct 25. HIW has an Earnings ESP of +1.45% and carries a Zacks Rank #3 presently.
Cousins Properties (CUZ - Free Report) is slated to release third-quarter earnings on Oct 27. CUZ has an Earnings ESP of +1.01% and a Zacks Rank of 3 at present.
Public Storage (PSA - Free Report) is scheduled to report quarterly figures on Nov 1. PSA has an Earnings ESP of +1.34% and a Zacks Rank of 2 (Buy) currently.
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.