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What's in Store for Crown Castle (CCI) This Earnings Season
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Crown Castle Inc. (CCI - Free Report) is scheduled to release first-quarter 2024 results on Apr 17, after the closing bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate.
In the last reported quarter, this Houston, TX-based real estate investment trust’s (REIT) adjusted funds from operations (FFO) per share outpaced the Zacks Consensus Estimate by 1.68%. Results reflected better-than-anticipated revenues aided by healthy site-rental revenue growth. However, higher interest expense on debt obligations partly offset the positive.
Over the preceding four quarters, CCI’s FFO per share surpassed estimates on two occasions for as many missed, the average beat being 0.65%. This is depicted in the graph below:
Let’s see how things have shaped up before this announcement.
Factors at Play
Although Crown Castle has an unmatched portfolio of wireless communication infrastructure assets, a slowdown in tower activity in the to-be-reported quarter is likely to have impacted the company’s performance.
Our estimate for quarterly site rental revenues stands at $1.57 billion, implying a 3.5% decline year over year. We estimate revenues from the network services and other segment to decline significantly year over year to $61.7 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.63 billion, indicating a decrease of 8.14% from the year-ago reported number.
Also, high interest expenses are likely to have been a spoilsport for CCI during the to-be-reported quarter. We expect first-quarter 2024 interest expenses and amortization of deferred financing costs to rise 14.7% year over year.
Crown Castle’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unrevised at $1.71 over the past month. The figure also suggests a 10.47% decrease from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for Crown Castle this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Crown Castle currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three other stocks from the broader REIT sector — SL Green Realty (SLG - Free Report) , Welltower (WELL - Free Report) and Vornado Realty Trust (VNO - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Welltower, scheduled to report quarterly numbers on Apr 29, has an Earnings ESP of +1.47% and carries a Zacks Rank of 3.
Vornado, slated to release quarterly numbers on May 6, has an Earnings ESP of +2.12% and carries 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 represents 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 Inc. (CCI - Free Report) is scheduled to release first-quarter 2024 results on Apr 17, after the closing bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate.
In the last reported quarter, this Houston, TX-based real estate investment trust’s (REIT) adjusted funds from operations (FFO) per share outpaced the Zacks Consensus Estimate by 1.68%. Results reflected better-than-anticipated revenues aided by healthy site-rental revenue growth. However, higher interest expense on debt obligations partly offset the positive.
Over the preceding four quarters, CCI’s FFO per share surpassed estimates on two occasions for as many missed, the average beat being 0.65%. This is depicted in the graph below:
Crown Castle Inc. Price and EPS Surprise
Crown Castle Inc. price-eps-surprise | Crown Castle Inc. Quote
Let’s see how things have shaped up before this announcement.
Factors at Play
Although Crown Castle has an unmatched portfolio of wireless communication infrastructure assets, a slowdown in tower activity in the to-be-reported quarter is likely to have impacted the company’s performance.
Our estimate for quarterly site rental revenues stands at $1.57 billion, implying a 3.5% decline year over year. We estimate revenues from the network services and other segment to decline significantly year over year to $61.7 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.63 billion, indicating a decrease of 8.14% from the year-ago reported number.
Also, high interest expenses are likely to have been a spoilsport for CCI during the to-be-reported quarter. We expect first-quarter 2024 interest expenses and amortization of deferred financing costs to rise 14.7% year over year.
Crown Castle’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unrevised at $1.71 over the past month. The figure also suggests a 10.47% decrease from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for Crown Castle this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Crown Castle currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three other stocks from the broader REIT sector — SL Green Realty (SLG - Free Report) , Welltower (WELL - Free Report) and Vornado Realty Trust (VNO - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
SL Green is slated to report quarterly numbers on Apr 17. SLG has an Earnings ESP of +7.42% and carries a Zacks Rank of 2 presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Welltower, scheduled to report quarterly numbers on Apr 29, has an Earnings ESP of +1.47% and carries a Zacks Rank of 3.
Vornado, slated to release quarterly numbers on May 6, has an Earnings ESP of +2.12% and carries 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 represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.