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American Tower (AMT) Tops Earnings & Revenue Estimates in Q2

Leading international wireless tower operator, American Tower Corp. AMT reported impressive financial results in the second quarter of 2017, wherein both top and bottom line outpaced the Zacks Consensus Estimate.

American Tower's quarterly adjusted Funds from Operations (AFFO) of $725 million were up 22.5% year over year.  AFFO per share was $1.68, up 21.74% from the year-ago quarter. Moreover, the AFFO per share of $1.68 surpassed the Zacks Consensus Estimate of $1.55.

Total revenue of $1,662.4 million increased 15.3% year over year, outpacing the Zacks Consensus Estimate of $1,644.6 million.

Adjusted EBITDA in the reported quarter was $1,021 million, up 17.5% from the prior-year quarter. Adjusted EBITDA margin came in at 61.4% in the reported quarter. Selling, general & administrative expenses totaled $153.15 million compared with $138.23 million in the year-earlier quarter. Operating income was $576.9 million versus $432.8 million at the end of Jun 30, 2016.

In the second quarter of 2017, American Tower generated $795 million of cash from operations, up 6.4% year over year. Free cash flow in the reported quarter was $585 million, up 1.1% year over year.

At the end of the second quarter of 2017, the company had $770.02 million in cash and cash equivalents and around $17,509.9 million of outstanding long-term debt compared with $787.16 million and $18,294.7 million, respectively, at the end of 2016.

American Tower competes with some major wireless tower operators like Crown Castle International Corp. CCI, SBA Communications Corp. SBAC and HCP Inc. HCP. All four stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Property Segment

Quarterly revenues grossed $1,638.17 million, versus $1,427.19 million in the year-ago quarter. Operating profit was $1,044 million and operating profit margin was pegged at 64% in the reported quarter.

Within the Property segment, revenues from the U.S. totaled $897 million, up 8.07% year over year. Meanwhile, total international revenues came in at $741 million, up 24.12% year over year. Within this, revenues from Asia came in at $295 million, increasing a whopping 31.11% year over year. EMEA revenues grossed $160 million, up 18.52% year over year. Latin America revenues totaled $287 million, up 21.09% year over year.

Services Segment

Quarterly revenues totaled $24.25 million, versus $16.03 million in the year-ago quarter. Operating profit was $11 million and operating profit margin was pegged at 46% in the reported quarter.

Cash Dividend Payment

In the second-quarter of 2017, the Board of Directors of American Tower declared a cash distribution of $0.64 per share to its common stockholders of record as of the closure of business on Jun 19, 2017, payable in the in the third quarter of 2017.

In addition, the Company paid $27 million in preferred stock dividends during the quarter under review. In the said quarter, all outstanding shares of the Company’s 5.25% Mandatory Convertible Preferred Stock, Series A were converted into 5.6 million shares of its common stock.

American Tower Corporation (REIT) Price, Consensus and EPS Surprise

 

American Tower Corporation (REIT) Price, Consensus and EPS Surprise | American Tower Corporation (REIT) Quote

Full Year Outlook for 2017

For 2017, American Tower anticipates property revenues to be $6,480–$6,580 million, reflecting midpoint growth rate of 14.3%. Net income is expected between $1,355 million and $1,405 million, reflecting midpoint growth rate of 42.2%. Adjusted EBITDA is anticipated in the range of $4,045–$4,105 million, reflecting midpoint growth rate of 14.7%. Consolidated AFFO is expected in the range of $2,835–$2,885 million, reflecting midpoint growth rate of 14.8%.

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American Tower Corporation (REIT) (AMT): Free Stock Analysis Report
 
Crown Castle International Corporation (CCI): Free Stock Analysis Report
 
SBA Communications Corporation (SBAC): Free Stock Analysis Report
 
HCP, Inc. (HCP): Free Stock Analysis Report
 
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