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American Tower (AMT) Q1 AFFO Tops Estimate, Revenues Up Y/Y
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American Tower Corporation (AMT - Free Report) has reported first-quarter 2020 adjusted funds from operations (AFFO) per share of $2.12, beating the Zacks Consensus Estimate of $2.04. Further, the reported figure improved 15.2% year over year.
The company generated total revenues of $1.99 billion, which narrowly missed the Zacks Consensus Estimate of $2 billion. Nonetheless, the figure improved 9.9% year over year.
The company witnessed decent organic tenant billing growth. However, results were adversely impacted by Indian carrier consolidation-driven churn and non-recurrence of the Tata settlement, leading to an overall reduction in Indian contracted tenant revenues.
Quarter in Detail
Adjusted EBITDA in the reported quarter was $1,271 million, up 14.1% from the prior-year quarter. Adjusted EBITDA margin was 63.8% in the first quarter of 2020. Operating income was $736.8 million compared with the $614.9 million reported in the year-ago quarter.
During the first quarter, the company spent around $49 million to acquire 193 communications sites, primarily in international markets.
Cash Flow and Liquidity
In the first quarter of 2020, American Tower generated $800 million of cash from operating activities, up 1.9% year over year. Free cash flow during the period was $575 million, up 3.7% year over year.
At the end of the first quarter, the company had $4.2 billion of total liquidity. This comprised $1.3 billion in cash and cash equivalents, and availability of $2.9 billion under its revolving credit facilities (net of any outstanding letters of credit).
Property Segment
Quarterly revenues grossed $1,973 million, up 10.5% year over year. Operating profit was $1,306 million and operating profit margin was 66% during first-quarter 2020.
In the Property segment, revenues from the United States totaled $1,090 million, up 10.5% year over year. Further, total international revenues amounted to $883 million, up 10.5% year over year.
Within this, revenues from Asia totaled $287 million, edging down 0.8% year over year. Africa revenues grossed $226 million, up 56.6% year over year, while Europe revenues of $35 million improved 3% from the year-ago period. Latin America revenues totaled $337 million, improving 1% year over year.
Services Segment
Quarterly revenues totaled $20 million, down 27.4% year over year. Operating profit was $9 million and operating profit margin was 44% during the March-end quarter.
Outlook
For 2020, American Tower anticipates property revenues of $7,675-$7,825 million, suggesting an improvement of 3.8% at the mid-point. Adjusted EBITDA is projected to be$4,920-$5,020 million, indicating a mid-point increase of 4.8%. Consolidated AFFO is estimated to be $3,600-$3,700 million, suggesting a mid-point expansion of 3.7%.
Omega Healthcare Investors, Inc. (OHI - Free Report) is slated to report first-quarter results on May 4.
CoreSiteRealty Corporation (COR - Free Report) is slated to release first-quarter earnings on Apr 30.
Americold Realty Trust (COLD - Free Report) is expected to release earnings results on May 7.
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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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American Tower (AMT) Q1 AFFO Tops Estimate, Revenues Up Y/Y
American Tower Corporation (AMT - Free Report) has reported first-quarter 2020 adjusted funds from operations (AFFO) per share of $2.12, beating the Zacks Consensus Estimate of $2.04. Further, the reported figure improved 15.2% year over year.
The company generated total revenues of $1.99 billion, which narrowly missed the Zacks Consensus Estimate of $2 billion. Nonetheless, the figure improved 9.9% year over year.
The company witnessed decent organic tenant billing growth. However, results were adversely impacted by Indian carrier consolidation-driven churn and non-recurrence of the Tata settlement, leading to an overall reduction in Indian contracted tenant revenues.
Quarter in Detail
Adjusted EBITDA in the reported quarter was $1,271 million, up 14.1% from the prior-year quarter. Adjusted EBITDA margin was 63.8% in the first quarter of 2020. Operating income was $736.8 million compared with the $614.9 million reported in the year-ago quarter.
During the first quarter, the company spent around $49 million to acquire 193 communications sites, primarily in international markets.
Cash Flow and Liquidity
In the first quarter of 2020, American Tower generated $800 million of cash from operating activities, up 1.9% year over year. Free cash flow during the period was $575 million, up 3.7% year over year.
At the end of the first quarter, the company had $4.2 billion of total liquidity. This comprised $1.3 billion in cash and cash equivalents, and availability of $2.9 billion under its revolving credit facilities (net of any outstanding letters of credit).
Property Segment
Quarterly revenues grossed $1,973 million, up 10.5% year over year. Operating profit was $1,306 million and operating profit margin was 66% during first-quarter 2020.
In the Property segment, revenues from the United States totaled $1,090 million, up 10.5% year over year. Further, total international revenues amounted to $883 million, up 10.5% year over year.
Within this, revenues from Asia totaled $287 million, edging down 0.8% year over year. Africa revenues grossed $226 million, up 56.6% year over year, while Europe revenues of $35 million improved 3% from the year-ago period. Latin America revenues totaled $337 million, improving 1% year over year.
Services Segment
Quarterly revenues totaled $20 million, down 27.4% year over year. Operating profit was $9 million and operating profit margin was 44% during the March-end quarter.
Outlook
For 2020, American Tower anticipates property revenues of $7,675-$7,825 million, suggesting an improvement of 3.8% at the mid-point. Adjusted EBITDA is projected to be$4,920-$5,020 million, indicating a mid-point increase of 4.8%. Consolidated AFFO is estimated to be $3,600-$3,700 million, suggesting a mid-point expansion of 3.7%.
Currently, American Tower carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Tower Corporation (REIT) Price, Consensus and EPS Surprise
American Tower Corporation (REIT) price-consensus-eps-surprise-chart | American Tower Corporation (REIT) Quote
Earnings Releases of Other REITs
Omega Healthcare Investors, Inc. (OHI - Free Report) is slated to report first-quarter results on May 4.
CoreSiteRealty Corporation (COR - Free Report) is slated to release first-quarter earnings on Apr 30.
Americold Realty Trust (COLD - Free Report) is expected to release earnings results on May 7.
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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>