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American Tower (AMT) Q1 Earnings: Stock to Surprise?

American Tower Corporation AMT is slated to release first-quarter 2016 results on Apr 29, before the market opens.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 2.42%. Let’s see how things are shaping up ahead of this announcement.


Factors to Influence the Quarter

In order to support the rising demand for LTE deployment, American Tower plans to construct nearly 2,500 sites across the world in 2016. Mobile subscriber growth has significantly boosted the wireless tower industry. Next-generation 4G LTE networks, and increased usage of smartphones and tablets are creating impressive demand for tower leasing. This has prompted carriers like Sprint Corp. S and T-Mobile US Inc. TMUS to aggressively deploy the technology, thus providing organic growth opportunities for American Tower, going ahead.

Moreover, American Tower is rapidly expanding in international markets, especially in the emerging Asian and Latin American markets. This geographic diversification will boost revenues.

Earnings Whispers

Our proven model does not conclusively show that American Toweris likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.

Zacks ESP: American Tower has an Earnings ESP of 0.00%. This is because both Most Accurate estimate and Zacks Consensus Estimate stand at $1.25.

Zacks Rank: American Tower has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes earnings surprise prediction difficult.  

A Stock to Consider

Here is a company you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter:

Host Hotels & Resorts, Inc. HST, with an Earnings ESP of +2.63% and a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AMER TOWER CORP (AMT): Free Stock Analysis Report
 
SPRINT CORP (S): Free Stock Analysis Report
 
HOST HOTEL&RSRT (HST): Free Stock Analysis Report
 
T-MOBILE US INC (TMUS): Free Stock Analysis Report
 
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