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Crown Castle International Corp.’s (CCI - Free Report) first-quarter 2020 adjusted funds from operations (FFO) per share of $1.42 came in line with the Zacks Consensus Estimate. The figure also comes in a cent higher than the prior-year quarter tally.
Net revenues of $1.42 billion inched up 0.9% year on year for the reported quarter. However, the figure missed the Zacks Consensus Estimate of $1.45 billion.
The year-on-year revenue increase reflects growth in site-rental revenues. However, services and other revenues were down during the quarter. The company also maintained the current-year outlook despite the prevailing uncertainties due to the coronavirus pandemic.
Additionally, the company issued $1.25 billion in senior unsecured notes with a weighted average maturity of 18 years in April.
Quarter in Detail
Site-rental revenues came in at $1.3 billion, up 5.5% year over year. The $71 million in organic contribution to site rental revenues reflects 5.8% growth on new leasing activities and as contracted tenant escalations. However, services and other revenues plunged 33.1% year over year to $111 million.
Quarterly operating income decreased 0.8% year over year to $364 million. However, operating expenses flared up 1.5% year over year to $1.1 billion. Quarterly adjusted EBITDA of $814 million marked year-over-year growth of 1.2%.
The company reported capital expenditures of $447 million during the quarter. This included $13 million of discretionary land purchases, $21 million of sustaining capital expenditures and $413 million of discretionary capital expenditures.
Balance Sheet
Crown Castle exited first-quarter 2020 with cash and cash equivalents of $310 million, up from the $196 million reported at the end of 2019.
Furthermore, as of Mar 31, 2020, the company generated $653 million of net cash from operating activities compared with the $512 million reported in the year-ago period.
Also, debt and other long-term obligations aggregated $2.67 billion, up from the $1.92 billion witnessed at the end of 2019.
2020 Outlook
Crown Castle has maintained its outlook for 2020. The company expects site-rental revenues of $5,337-$5,382 million. Adjusted EBITDA is projected at $3,479-$3,524 million. Adjusted FFO is projected at $2,572-$2,617 million.
We now look forward to the earnings releases of other REITs like Omega Healthcare Investors, Inc. (OHI - Free Report) , Vornado Realty Trust (VNO - Free Report) and Realty Income Corporation (O - Free Report) . All three companies are scheduled to release quarterly numbers on May 4.
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 FFO Meets Estimates, View Intact
Crown Castle International Corp.’s (CCI - Free Report) first-quarter 2020 adjusted funds from operations (FFO) per share of $1.42 came in line with the Zacks Consensus Estimate. The figure also comes in a cent higher than the prior-year quarter tally.
Net revenues of $1.42 billion inched up 0.9% year on year for the reported quarter. However, the figure missed the Zacks Consensus Estimate of $1.45 billion.
The year-on-year revenue increase reflects growth in site-rental revenues. However, services and other revenues were down during the quarter. The company also maintained the current-year outlook despite the prevailing uncertainties due to the coronavirus pandemic.
Additionally, the company issued $1.25 billion in senior unsecured notes with a weighted average maturity of 18 years in April.
Quarter in Detail
Site-rental revenues came in at $1.3 billion, up 5.5% year over year. The $71 million in organic contribution to site rental revenues reflects 5.8% growth on new leasing activities and as contracted tenant escalations. However, services and other revenues plunged 33.1% year over year to $111 million.
Quarterly operating income decreased 0.8% year over year to $364 million. However, operating expenses flared up 1.5% year over year to $1.1 billion. Quarterly adjusted EBITDA of $814 million marked year-over-year growth of 1.2%.
The company reported capital expenditures of $447 million during the quarter. This included $13 million of discretionary land purchases, $21 million of sustaining capital expenditures and $413 million of discretionary capital expenditures.
Balance Sheet
Crown Castle exited first-quarter 2020 with cash and cash equivalents of $310 million, up from the $196 million reported at the end of 2019.
Furthermore, as of Mar 31, 2020, the company generated $653 million of net cash from operating activities compared with the $512 million reported in the year-ago period.
Also, debt and other long-term obligations aggregated $2.67 billion, up from the $1.92 billion witnessed at the end of 2019.
2020 Outlook
Crown Castle has maintained its outlook for 2020. The company expects site-rental revenues of $5,337-$5,382 million. Adjusted EBITDA is projected at $3,479-$3,524 million. Adjusted FFO is projected at $2,572-$2,617 million.
Crown Castle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crown Castle International Corporation Price, Consensus and EPS Surprise
Crown Castle International Corporation price-consensus-eps-surprise-chart | Crown Castle International Corporation Quote
We now look forward to the earnings releases of other REITs like Omega Healthcare Investors, Inc. (OHI - Free Report) , Vornado Realty Trust (VNO - Free Report) and Realty Income Corporation (O - Free Report) . All three companies are scheduled to release quarterly numbers on May 4.
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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>