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What to Expect From American Tower (AMT) in Q2 Earnings?
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American Tower Corporation (AMT - Free Report) is scheduled to release second-quarter 2024 results on Jul 30 before the opening bell. The quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last quarter, American Tower reported an adjusted FFO per share of $2.79, which beat the consensus mark by 9.41%. The quarterly results reflected better-than-anticipated revenues, aided by revenue growth across its Property segment.
Over the preceding four quarters, the company topped adjusted FFO per share estimates on all occasions, the average beat being 7.12%. The graph below depicts this surprise history:
American Tower is likely to have continued to benefit from the secular growth trends of the wireless industry in the second quarter. The advancement of mobile technologies like 4G and 5G networks, along with the increase in bandwidth-intensive applications, has significantly boosted global mobile data usage. Additionally, the widespread use of network-intensive applications for video conferencing, cloud services and hybrid working scenarios has further driven this rise.
Consequently, wireless service providers and carriers are deploying additional equipment on existing networks to enhance their coverage and capacity, meeting the rising consumer demand. This positive trend is likely to have driven the demand for AMT’s extensive and geographically diverse communication real estate portfolio, favorably impacting its quarterly performance.
American Tower’s long-term (typically five to 10 years) tower leases with major wireless carriers with multiple renewal period options are expected to have aided stable revenue generation, boosting the top line. The REIT is also anticipated to have carried on with its macro-tower investments during the quarter, backed by a solid balance sheet position.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.81 billion, which indicates a rise of 1.24% from the year-ago period’s reported figure.
The consensus estimate for operating revenues from the Property segment is pegged at $2.77 billion, which implies growth from $2.73 billion reported in the year-ago period.
With the growth in cloud computing, the Internet of Things and Big Data and an increasing number of companies opting for third-party IT infrastructure, data center REITs are experiencing a booming market. The consensus mark for operating revenues from the Data Centers is currently pegged at $224.8 million, up from $205.0 million in the year-ago period.
However, operating revenues from the Services segment are expected to be on the lower side in the to-be-reported quarter. The Zacks Consensus Estimate stands at $41.26 million, which suggests a fall from $43 million reported in the prior-year quarter.
Additionally, higher interest expenses are likely to have affected AMT’s performance to some extent during the quarter. Also, the elevated churn in certain markets where the company operates may have been a spoilsport.
American Tower’s activities during the soon-to-be-reported quarter were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has moved down a cent to $2.53 over the past month. However, the figure suggests an increase of 2.85% from the year-ago quarter’s reported figure.
Here is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of FFO per share for American Tower this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
American Tower currently carries a Zacks Rank of 2 and has an Earnings ESP of +0.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the broader REIT sector — Extra Space Storage Inc. (EXR - Free Report) and Ventas, Inc. (VTR - Free Report) — that you may want to consider as our model shows that these also have the right combination of elements to report a surprise this quarter.
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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What to Expect From American Tower (AMT) in Q2 Earnings?
American Tower Corporation (AMT - Free Report) is scheduled to release second-quarter 2024 results on Jul 30 before the opening bell. The quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last quarter, American Tower reported an adjusted FFO per share of $2.79, which beat the consensus mark by 9.41%. The quarterly results reflected better-than-anticipated revenues, aided by revenue growth across its Property segment.
Over the preceding four quarters, the company topped adjusted FFO per share estimates on all occasions, the average beat being 7.12%. The graph below depicts this surprise history:
American Tower Corporation Price and EPS Surprise
American Tower Corporation price-eps-surprise | American Tower Corporation Quote
Factors to Note
American Tower is likely to have continued to benefit from the secular growth trends of the wireless industry in the second quarter. The advancement of mobile technologies like 4G and 5G networks, along with the increase in bandwidth-intensive applications, has significantly boosted global mobile data usage. Additionally, the widespread use of network-intensive applications for video conferencing, cloud services and hybrid working scenarios has further driven this rise.
Consequently, wireless service providers and carriers are deploying additional equipment on existing networks to enhance their coverage and capacity, meeting the rising consumer demand. This positive trend is likely to have driven the demand for AMT’s extensive and geographically diverse communication real estate portfolio, favorably impacting its quarterly performance.
American Tower’s long-term (typically five to 10 years) tower leases with major wireless carriers with multiple renewal period options are expected to have aided stable revenue generation, boosting the top line. The REIT is also anticipated to have carried on with its macro-tower investments during the quarter, backed by a solid balance sheet position.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.81 billion, which indicates a rise of 1.24% from the year-ago period’s reported figure.
The consensus estimate for operating revenues from the Property segment is pegged at $2.77 billion, which implies growth from $2.73 billion reported in the year-ago period.
With the growth in cloud computing, the Internet of Things and Big Data and an increasing number of companies opting for third-party IT infrastructure, data center REITs are experiencing a booming market. The consensus mark for operating revenues from the Data Centers is currently pegged at $224.8 million, up from $205.0 million in the year-ago period.
However, operating revenues from the Services segment are expected to be on the lower side in the to-be-reported quarter. The Zacks Consensus Estimate stands at $41.26 million, which suggests a fall from $43 million reported in the prior-year quarter.
Additionally, higher interest expenses are likely to have affected AMT’s performance to some extent during the quarter. Also, the elevated churn in certain markets where the company operates may have been a spoilsport.
American Tower’s activities during the soon-to-be-reported quarter were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has moved down a cent to $2.53 over the past month. However, the figure suggests an increase of 2.85% from the year-ago quarter’s reported figure.
Here is What Our Quantitative Model Predicts:
Our proven model predicts a surprise in terms of FFO per share for American Tower this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
American Tower currently carries a Zacks Rank of 2 and has an Earnings ESP of +0.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the broader REIT sector — Extra Space Storage Inc. (EXR - Free Report) and Ventas, Inc. (VTR - Free Report) — that you may want to consider as our model shows that these also have the right combination of elements to report a surprise this quarter.
Extra Space Storage, scheduled to report quarterly numbers on Jul 30, has an Earnings ESP of +1.00% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ventas is slated to report quarterly numbers on Aug 1. VTR has an Earnings ESP of +1.76% and carries a Zacks Rank of 3 presently.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.