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American Tower to Report Q2 Earnings: What to Expect From the Stock?
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Key Takeaways
American Tower is expected to post year-over-year declines in Q2 revenues and AFFO per share.
AMT's services and data center segments are projected to show strong revenue growth from last year.
Elevated churn in U.S. & Canada and high interest costs may drag down total property segment revenues.
American Tower Corporation (AMT - Free Report) is scheduled to release second-quarter 2025 results on July 29, before the opening bell. The company’s quarterly results are expected to reflect a year-over-year decline in revenues and adjusted funds from operations (AFFO) per share.
In the last quarter, American Tower reported an AFFO attributable to AMT common stockholders per share of $2.75, which beat the consensus mark of $2.60. The quarterly results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment.
Over the preceding four quarters, the company’s AFFO per share estimates topped on three occasions and missed in the remaining period, the average beat being 4.9%. The graph below depicts this surprise history:
With wireless carriers increasing capital expenditure due to rising wireless penetration, accelerated 5G network deployment efforts and spectrum auctions, demand is likely to stay strong. This positive trend is likely to have driven the demand for AMT’s extensive and geographically diverse communication real estate portfolio, favorably impacting its quarterly performance.
The REIT is also anticipated to have continued with its macro-tower investments during the quarter, backed by a solid balance sheet position.
The consensus estimate for operating revenues from the Services segment is pegged at $74.9 million, which indicates a significant rise from $47 million reported in the prior-year quarter.
Moreover, AMT’s data center business is likely to have benefited from growth in cloud computing, the Internet of Things, big data and the elevated demand for third-party IT infrastructure.
The Zacks Consensus Estimate for operating revenues from the Data Centers segment is currently pegged at $257.7 million, indicating an uptick from $231 million in the year-ago period.
However, the elevated churn in AMT’s U.S. & Canada property segments might have been a spoilsport. Also, high interest costs are likely to have affected its performance to some extent during the quarter.
The consensus estimate for operating revenues from the Total Property segment is pegged at $2.50 billion, which implies a decline from $2.85 billion reported in the year-ago period.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.58 billion, which indicates a drop of 11% from the year-ago period’s reported figure.
American Tower’s activities during the soon-to-be-reported quarter have been inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has remained unchanged at $2.59 in the past three months. However, the figure implies a decrease of 7.2% from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts for AMT
Our proven model predicts a likely surprise in terms of AFFO per share for American Tower 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 AFFO beat, which is exactly the case here.
American Tower has an Earnings ESP of +1.08% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — AvalonBay Communities (AVB - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
Cousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.
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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American Tower to Report Q2 Earnings: What to Expect From the Stock?
Key Takeaways
American Tower Corporation (AMT - Free Report) is scheduled to release second-quarter 2025 results on July 29, before the opening bell. The company’s quarterly results are expected to reflect a year-over-year decline in revenues and adjusted funds from operations (AFFO) per share.
In the last quarter, American Tower reported an AFFO attributable to AMT common stockholders per share of $2.75, which beat the consensus mark of $2.60. The quarterly results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment.
Over the preceding four quarters, the company’s AFFO per share estimates topped on three occasions and missed in the remaining period, the average beat being 4.9%. The graph below depicts this surprise history:
American Tower Corporation Price and EPS Surprise
American Tower Corporation price-eps-surprise | American Tower Corporation Quote
Factors at Play and Q2 Projections for AMT
With wireless carriers increasing capital expenditure due to rising wireless penetration, accelerated 5G network deployment efforts and spectrum auctions, demand is likely to stay strong. This positive trend is likely to have driven the demand for AMT’s extensive and geographically diverse communication real estate portfolio, favorably impacting its quarterly performance.
The REIT is also anticipated to have continued with its macro-tower investments during the quarter, backed by a solid balance sheet position.
The consensus estimate for operating revenues from the Services segment is pegged at $74.9 million, which indicates a significant rise from $47 million reported in the prior-year quarter.
Moreover, AMT’s data center business is likely to have benefited from growth in cloud computing, the Internet of Things, big data and the elevated demand for third-party IT infrastructure.
The Zacks Consensus Estimate for operating revenues from the Data Centers segment is currently pegged at $257.7 million, indicating an uptick from $231 million in the year-ago period.
However, the elevated churn in AMT’s U.S. & Canada property segments might have been a spoilsport. Also, high interest costs are likely to have affected its performance to some extent during the quarter.
The consensus estimate for operating revenues from the Total Property segment is pegged at $2.50 billion, which implies a decline from $2.85 billion reported in the year-ago period.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.58 billion, which indicates a drop of 11% from the year-ago period’s reported figure.
American Tower’s activities during the soon-to-be-reported quarter have been inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has remained unchanged at $2.59 in the past three months. However, the figure implies a decrease of 7.2% from the year-ago quarter’s reported figure.
What Our Quantitative Model Predicts for AMT
Our proven model predicts a likely surprise in terms of AFFO per share for American Tower 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 AFFO beat, which is exactly the case here.
American Tower has an Earnings ESP of +1.08% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — AvalonBay Communities (AVB - Free Report) and Cousins Properties (CUZ - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
AvalonBay Communities, scheduled to report quarterly numbers on July 30, has an Earnings ESP of +0.02% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.
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.