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Crown Castle's (CCI) Q1 AFFO Beat, Site-Rental Revenues Fall
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Crown Castle Inc.’s (CCI - Free Report) first-quarter 2024 adjusted funds from operations (AFFO) per share of $1.72 surpassed the Zacks Consensus Estimate of $1.71. Net revenues of $1.64 billion outpaced the Zacks Consensus Estimate of $1.63 billion.
However, AFFO per share reported a 9.9% decline year over year. Net revenues fell 7.4% year over year.
Crown Castle Inc. Price, Consensus and EPS Surprise
CCI’s total site-rental revenues fell 2.2% year over year to $1.59 billion in the first quarter of 2024. The figure was higher than our estimate of $1.57 billion. The downside was driven by a decrease in towers and fiber segment site rental revenues.
Site-rental revenues in the towers segment declined 1.2% year over year to $1.07 billion. It was slightly higher than our estimate of $1.06 billion. The year-over-year decrease was due to the slowdown in tower activity related to the early stage of the 5G investment cycle.
Site-rental revenues in the fiber segment fell 4.2% year over year to $520 million. It was higher than our estimate of $507.7 million. The fall was mainly due to the decrease in organic contribution to site rental billings.
Apart from a decline in total site-rental revenues, network services and other revenues came in at $53 million, which plunged 64.4% from the prior-year quarter. It was lower than our estimate of $61 million.
Operating Expenses Fall
CCI’s quarterly site-rental cost of operations increased 3.6% year over year to $430 million. The figure was higher than our estimate of $416.1 million.
The company reported services and other cost of operations of $34 million in the quarter. It decreased 67.3% from the prior-year quarter. It was lower than our estimate of $45.1 million.
Financial Position
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, 2023, 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).
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 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 Beat, Site-Rental Revenues Fall
Crown Castle Inc.’s (CCI - Free Report) first-quarter 2024 adjusted funds from operations (AFFO) per share of $1.72 surpassed the Zacks Consensus Estimate of $1.71. Net revenues of $1.64 billion outpaced the Zacks Consensus Estimate of $1.63 billion.
However, AFFO per share reported a 9.9% decline year over year. Net revenues fell 7.4% year over year.
Crown Castle Inc. Price, Consensus and EPS Surprise
Crown Castle Inc. price-consensus-eps-surprise-chart | Crown Castle Inc. Quote
Site-Rental Revenues Decrease
CCI’s total site-rental revenues fell 2.2% year over year to $1.59 billion in the first quarter of 2024. The figure was higher than our estimate of $1.57 billion. The downside was driven by a decrease in towers and fiber segment site rental revenues.
Site-rental revenues in the towers segment declined 1.2% year over year to $1.07 billion. It was slightly higher than our estimate of $1.06 billion. The year-over-year decrease was due to the slowdown in tower activity related to the early stage of the 5G investment cycle.
Site-rental revenues in the fiber segment fell 4.2% year over year to $520 million. It was higher than our estimate of $507.7 million. The fall was mainly due to the decrease in organic contribution to site rental billings.
Apart from a decline in total site-rental revenues, network services and other revenues came in at $53 million, which plunged 64.4% from the prior-year quarter. It was lower than our estimate of $61 million.
Operating Expenses Fall
CCI’s quarterly site-rental cost of operations increased 3.6% year over year to $430 million. The figure was higher than our estimate of $416.1 million.
The company reported services and other cost of operations of $34 million in the quarter. It decreased 67.3% from the prior-year quarter. It was lower than our estimate of $45.1 million.
Financial Position
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, 2023, 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).
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.