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Crown Castle's (CCI) Q2 AFFO Miss Estimates, Revenues Fall Y/Y
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Crown Castle Inc. (CCI - Free Report) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $1.62, lagging the Zacks Consensus Estimate of $1.65. The reported figure also declined 21% from the year-ago quarter.
Results reflect a fall in net revenues on a year-over-year basis. Higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024. Management remains on track to deliver a full-year outlook for organic revenue growth of 4.5% in towers, 2% in fiber solutions, and double digits in small cells, adjusted for the impact of Sprint Cancellations.
Net revenues of $1.63 billion outpaced the Zacks Consensus Estimate of $1.62 billion. However, the figure fell 12.9% year over year.
Quarter in Detail
During the second quarter, CCI’s site-rental revenues came in at $1.58 billion, down 8.6% from the prior-year quarter. The organic contribution of negative $44 million to the site rental billings reflected a 3% decline and was not materially impacted by the Sprint Cancellations. Our estimate for site-rental revenues was pegged at $1.57 billion.
On the other hand, services and other revenues plunged 66.9% year over year to $46 million.
CCI’s quarterly operating expenses decreased 4.9% year over year to $1.14 billion. The operating income fell to $485 million from $667 million recorded a year ago. The quarterly adjusted EBITDA of $1.01 billion slipped 15.3%. We estimated the metric to be nearly the same as the reported number.
Interest expense on debt obligations rose 10.7% year over year to $227 million.
The company reported capital expenditures of $329 million in the quarter. This comprised discretionary capital expenditures of $302 million and sustaining capital expenditures of $27 million. Discretionary capital expenditures primarily attributable to Fiber were around $271 million, and those to Towers were $26 million.
Balance Sheet
Crown Castle exited the second quarter of 2024 with cash and cash equivalents of $155 million, up from $125 million reported as of Mar 31, 2024.
Moreover, debt and other long-term obligations aggregated $22.85 billion as of Jun 30, 2024, increasing 1.3% sequentially.
2024 Guidance
Crown Castle maintained its guidance for 2024 AFFO per share in the range of $6.91-$7.02. The Zacks Consensus Estimate is pegged at $6.94, which is within the guided range.
Site rental revenues are expected to be between $6.317-$6.362 billion, while the adjusted EBITDA is estimated to be in the band of $4.143-$4.193 billion.
Crown Castle currently carries a Zacks Rank #3 (Hold).
Crown Castle Inc. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other REITs like Highwoods Properties (HIW - Free Report) and SBA Communications (SBAC - Free Report) , slated to report on Jul 23 and Jul 29, respectively.
The Zacks Consensus Estimate for SBA Communications’ second-quarter 2024 FFO per share stands at $3.28, indicating a 1.2% rise year over year. SBAC currently has a Zacks Rank #3.
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) Q2 AFFO Miss Estimates, Revenues Fall Y/Y
Crown Castle Inc. (CCI - Free Report) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $1.62, lagging the Zacks Consensus Estimate of $1.65. The reported figure also declined 21% from the year-ago quarter.
Results reflect a fall in net revenues on a year-over-year basis. Higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024. Management remains on track to deliver a full-year outlook for organic revenue growth of 4.5% in towers, 2% in fiber solutions, and double digits in small cells, adjusted for the impact of Sprint Cancellations.
Net revenues of $1.63 billion outpaced the Zacks Consensus Estimate of $1.62 billion. However, the figure fell 12.9% year over year.
Quarter in Detail
During the second quarter, CCI’s site-rental revenues came in at $1.58 billion, down 8.6% from the prior-year quarter. The organic contribution of negative $44 million to the site rental billings reflected a 3% decline and was not materially impacted by the Sprint Cancellations. Our estimate for site-rental revenues was pegged at $1.57 billion.
On the other hand, services and other revenues plunged 66.9% year over year to $46 million.
CCI’s quarterly operating expenses decreased 4.9% year over year to $1.14 billion. The operating income fell to $485 million from $667 million recorded a year ago. The quarterly adjusted EBITDA of $1.01 billion slipped 15.3%. We estimated the metric to be nearly the same as the reported number.
Interest expense on debt obligations rose 10.7% year over year to $227 million.
The company reported capital expenditures of $329 million in the quarter. This comprised discretionary capital expenditures of $302 million and sustaining capital expenditures of $27 million. Discretionary capital expenditures primarily attributable to Fiber were around $271 million, and those to Towers were $26 million.
Balance Sheet
Crown Castle exited the second quarter of 2024 with cash and cash equivalents of $155 million, up from $125 million reported as of Mar 31, 2024.
Moreover, debt and other long-term obligations aggregated $22.85 billion as of Jun 30, 2024, increasing 1.3% sequentially.
2024 Guidance
Crown Castle maintained its guidance for 2024 AFFO per share in the range of $6.91-$7.02. The Zacks Consensus Estimate is pegged at $6.94, which is within the guided range.
Site rental revenues are expected to be between $6.317-$6.362 billion, while the adjusted EBITDA is estimated to be in the band of $4.143-$4.193 billion.
Crown Castle currently carries a Zacks Rank #3 (Hold).
Crown Castle Inc. Price, Consensus and EPS Surprise
Crown Castle Inc. price-consensus-eps-surprise-chart | Crown Castle Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs like Highwoods Properties (HIW - Free Report) and SBA Communications (SBAC - Free Report) , slated to report on Jul 23 and Jul 29, respectively.
The Zacks Consensus Estimate for Highwoods’ second-quarter 2024 FFO per share is pegged at 90 cents, implying a 4.3% year-over-year decrease. HIW currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SBA Communications’ second-quarter 2024 FFO per share stands at $3.28, indicating a 1.2% rise year over year. SBAC currently has a Zacks Rank #3.
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.