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Crown Castle Inc. (CCI - Free Report) reported first-quarter 2024 adjusted funds from operations (AFFO) per share of $1.72, outpacing the Zacks Consensus Estimate by a penny. However, the reported figure declined 9.9% from the year-ago quarter.
Results reflect better-than-anticipated revenues. However, higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024.
Net revenues of $1.64 billion, too, beat the Zacks Consensus Estimate of $1.63 billion. However, the figure fell 7.4% year over year.
Quarter in Detail
During the first quarter, CCI’s site-rental revenues came in at $1.59 billion, down 2.2% from the prior-year quarter. The organic contribution of $17 million to the site rental billings reflected 1.2% growth and was not materially impacted by the Sprint Cancellations. Our estimate for site-rental revenues was pegged at $1.56 billion.
On the other hand, services and other revenues plunged 64.4% year over year to $53 million.
CCI’s quarterly operating expenses decreased 3.7% year over year to $1.1 billion. The operating income fell to $538 million from $628 million recorded a year ago. The quarterly adjusted EBITDA of $1.04 billion slipped 6.2%. We estimated the metric to be $1.08 billion.
Interest expense on debt obligations rose 12.6% year over year to $223 million.
The company reported capital expenditures of $320 million in the quarter. This comprised discretionary capital expenditures of $298 million and sustaining capital expenditures of $22 million. Discretionary capital expenditures primarily attributable to Fiber were around $259 million, and those to Towers were roughly $33 million.
Balance Sheet
Crown Castle exited the first quarter of 2024 with cash and cash equivalents of $125 million, up from $105 million reported as of Dec 31, 2023.
Moreover, debt and other long-term obligations aggregated $22.56 billion as of Mar 31, 2024, increasing 2.1% sequentially.
2024 Guidance
Crown Castle maintained its guidance for 2024 AFFO per share in the range of $6.85-$6.97. The Zacks Consensus Estimate is pegged at $6.92, which is within the guided range.
Site rental revenues are expected to be between $6.347 billion and $6.392 billion, while the adjusted EBITDA is estimated to be in the band of $4.138-$4.188 billion.
Crown Castle currently carries a Zacks Rank #4 (Sell).
Crown Castle Inc. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities (ARE - Free Report) and Welltower (WELL - Free Report) , slated to report on Apr 22 and Apr 29, respectively. Meanwhile, Ventas (VTR - Free Report) is scheduled for May 1.
The Zacks Consensus Estimate for Welltower’s first-quarter 2024 FFO per share is pegged at 94 cents, suggesting a year-over-year rise of 10.6%. WELL currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for Ventas’ first-quarter 2024 FFO per share stands at 75 cents, indicating a 1.4% rise year over year. VTR currently has a Zacks Rank #3.
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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Crown Castle's (CCI) Q1 AFFO & Revenues Surpass Estimates
Crown Castle Inc. (CCI - Free Report) reported first-quarter 2024 adjusted funds from operations (AFFO) per share of $1.72, outpacing the Zacks Consensus Estimate by a penny. However, the reported figure declined 9.9% from the year-ago quarter.
Results reflect better-than-anticipated revenues. However, higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024.
Net revenues of $1.64 billion, too, beat the Zacks Consensus Estimate of $1.63 billion. However, the figure fell 7.4% year over year.
Quarter in Detail
During the first quarter, CCI’s site-rental revenues came in at $1.59 billion, down 2.2% from the prior-year quarter. The organic contribution of $17 million to the site rental billings reflected 1.2% growth and was not materially impacted by the Sprint Cancellations. Our estimate for site-rental revenues was pegged at $1.56 billion.
On the other hand, services and other revenues plunged 64.4% year over year to $53 million.
CCI’s quarterly operating expenses decreased 3.7% year over year to $1.1 billion. The operating income fell to $538 million from $628 million recorded a year ago. The quarterly adjusted EBITDA of $1.04 billion slipped 6.2%. We estimated the metric to be $1.08 billion.
Interest expense on debt obligations rose 12.6% year over year to $223 million.
The company reported capital expenditures of $320 million in the quarter. This comprised discretionary capital expenditures of $298 million and sustaining capital expenditures of $22 million. Discretionary capital expenditures primarily attributable to Fiber were around $259 million, and those to Towers were roughly $33 million.
Balance Sheet
Crown Castle exited the first quarter of 2024 with cash and cash equivalents of $125 million, up from $105 million reported as of Dec 31, 2023.
Moreover, debt and other long-term obligations aggregated $22.56 billion as of Mar 31, 2024, increasing 2.1% sequentially.
2024 Guidance
Crown Castle maintained its guidance for 2024 AFFO per share in the range of $6.85-$6.97. The Zacks Consensus Estimate is pegged at $6.92, which is within the guided range.
Site rental revenues are expected to be between $6.347 billion and $6.392 billion, while the adjusted EBITDA is estimated to be in the band of $4.138-$4.188 billion.
Crown Castle currently carries a Zacks Rank #4 (Sell).
Crown Castle Inc. Price, Consensus and EPS Surprise
Crown Castle Inc. price-consensus-eps-surprise-chart | Crown Castle Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities (ARE - Free Report) and Welltower (WELL - Free Report) , slated to report on Apr 22 and Apr 29, respectively. Meanwhile, Ventas (VTR - Free Report) is scheduled for May 1.
The Zacks Consensus Estimate for Alexandria’s first-quarter 2024 FFO per share is pegged at $2.32, implying a 5.9% year-over-year increase. ARE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s first-quarter 2024 FFO per share is pegged at 94 cents, suggesting a year-over-year rise of 10.6%. WELL currently carries a Zacks Rank #3.
The Zacks Consensus Estimate for Ventas’ first-quarter 2024 FFO per share stands at 75 cents, indicating a 1.4% rise year over year. VTR currently has a Zacks Rank #3.
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.