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American Tower (AMT) Tops Q1 Earnings, Revenue Estimates

American Tower Corp. AMT is a real estate investment trust and a leading wireless tower operator. The firm through its subsidiaries owns, operates and develops wireless and broadcast communications real estate.

Notably, American Tower has been aggressively buying towers in emerging markets. We believe the company’s acquisition spree should help drive its top line, going forward. Moreover, American Tower is certain that strength in its tower portfolio will help it double its AFFO per share by 2017. Further, higher adoption of smartphones/tablets, increased deployment of 3G/4G networks, significant margin improvement and dividend hikes also bode well.

On the flip side, the ongoing consolidation trend among telecom and cable TV operators may generate significant financial uncertainty for the company. To add to that, intensifying competition, high customer concentration, mounting operating expenses and a highly leveraged balance sheet remain headwinds.

American Tower currently carries a Zacks Rank #3 (Hold). The company has generated a negative average earnings surprise of 11.45% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: American Tower reported fourth quarter earnings of $1.41, higher than the Zacks Consensus Estimate of $1.25.

Revenue: Revenues of $1,289 million came above the Zacks Consensus Estimate of $1,287 million.  

Key Stats to Note: In the property segment, the company’s core growth was 25% in the first quarter of 2016 compared with 15.6% in the first quarter of 2015. Tenant run-rate revenue stood at $1,055 million compared with $892 million in the first quarter of 2015 after adjusting for foreign exchange impacts.

Check back later for our full write up on this American Tower earnings report later!  

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AMER TOWER CORP (AMT): Free Stock Analysis Report
 
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