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American Tower (AMT) Q2 AFFO Beat Estimates, '24 View Raised
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American Tower Corporation’s (AMT - Free Report) shares have gained nearly 2.5% in today’s trading session on stellar second-quarter results.
Adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.79 beat the Zacks Consensus Estimate of $2.53 and climbed 13.4% year over year.
Results reflect better-than-anticipated revenues, aided by revenue growth across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5.3% and total tenant billings growth of 6.1%. It has also raised its 2024 outlook.
The company has clocked in total revenues of $2.90 billion, outpacing the Zacks Consensus Estimate of $2.81 billion. The figure also increased 4.6% from the prior-year quarter.
Per Steven Vondran, CEO of American Tower, “The momentum from the start of the year extended into Q2, with core results highlighting the strong underlying demand for our portfolio of communications assets. Positive collection trends further accelerated in India, our U.S. & Canada segment delivered over 5% Organic Tenant Billings Growth and CoreSite achieved its second-highest quarter of signed new business on record, all supporting over 13% Attributable AFFO per Share growth in the quarter, and our ability to raise the midpoints of the key financial measures in our updated 2024 outlook.”
Quarter in Detail
Adjusted EBITDA was $1.89 billion, up 8.1% from the prior-year period. The adjusted EBITDA margin was 65.2% in the quarter.
The company recognized a gain of $46.4 million on the sales of the Vodafone Idea Limited (“VIL”) shares and the VIL optionally convertible debentures (“OCD”) for the quarter ended June 30, 2024. As of the same date, none of the VIL Shares or the VIL OCDs remained outstanding.
Property Operations
Revenues were $2.85 billion, up 4.6% on a year-over-year basis. Total operating profit was $1.93 billion, and the operating profit margin was 67%.
In the Property segment, revenues from the United States and Canada totaled $1.32 billion, up marginally year over year. Total international revenues amounted to $1.31 billion, rising 7%. Newly formed Data Centers added $231 million to Property revenues, up 12.7% from $205 million in the prior-year period.
Service Operations
Revenues totaled $47.4 million in the reported quarter, up from $43.1 million in the prior-year quarter. The operating profit was $21 million and the operating profit margin was 44% in the April-June quarter.
Cash Flow & Liquidity
In the second quarter, American Tower generated $1.34 billion of cash from operating activities, rising 10.7% year over year. Free cash flow in the period was $1.01 billion, jumping 27.5% from a year ago.
As of Jun 30, 2024, the company had $9.2 billion in total liquidity. This comprised $2.5 billion in cash and cash equivalents and availability of $6.7 billion under its revolving credit facilities (net of any outstanding letters of credit).
2024 Guidance Raised
American Tower anticipates total property revenues of $11,100 -$11,280 million, suggesting a year-over-year improvement of 1.7% at the mid-point. The earlier guided range was $11,080 -$11,260 million.
The adjusted EBITDA was revised upward to $7,250-$7,360 million from $7,120-$7,230 million stated earlier. This indicates a year-over-year mid-point increase of 3.1%.
The AFFO attributable to AMT common stockholders is now expected to be in the band of $4,905-$5,015 million, implying 7.6% year-over-year growth at the mid-point. The company’s prior expectations ranged from $4,820-$4,930 million.
AFFO per share is revised upward to $10.48-$10.72, indicating a rise at the mid-point of 7.4%. The prior projected range was $10.30-$10.53. The Zacks Consensus Estimate for the same is pegged at $10.45, which is below the company’s guided range.
It increased the guidance for capital expenditure between $1,600-$1,710 million from the prior guided range of $1,545-$1,655 million.
Prologis, Inc. (PLD - Free Report) reported second-quarter 2024 core funds from operations (FFO) per share of $1.34, outpacing the Zacks Consensus Estimate by a penny. This compares unfavorably with the year-ago quarter’s figure of $1.83.
The quarterly results reflect a rise in rental revenues and healthy leasing activity. However, high interest expenses are an undermining factor. In addition, PLD increased its 2024 core FFO per share guidance range.
Crown Castle Inc. (CCI - Free Report) reported second-quarter 2024 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.
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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American Tower (AMT) Q2 AFFO Beat Estimates, '24 View Raised
American Tower Corporation’s (AMT - Free Report) shares have gained nearly 2.5% in today’s trading session on stellar second-quarter results.
Adjusted funds from operations (AFFO) per share, attributable to AMT common stockholders, of $2.79 beat the Zacks Consensus Estimate of $2.53 and climbed 13.4% year over year.
Results reflect better-than-anticipated revenues, aided by revenue growth across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5.3% and total tenant billings growth of 6.1%. It has also raised its 2024 outlook.
The company has clocked in total revenues of $2.90 billion, outpacing the Zacks Consensus Estimate of $2.81 billion. The figure also increased 4.6% from the prior-year quarter.
Per Steven Vondran, CEO of American Tower, “The momentum from the start of the year extended into Q2, with core results highlighting the strong underlying demand for our portfolio of communications assets. Positive collection trends further accelerated in India, our U.S. & Canada segment delivered over 5% Organic Tenant Billings Growth and CoreSite achieved its second-highest quarter of signed new business on record, all supporting over 13% Attributable AFFO per Share growth in the quarter, and our ability to raise the midpoints of the key financial measures in our updated 2024 outlook.”
Quarter in Detail
Adjusted EBITDA was $1.89 billion, up 8.1% from the prior-year period. The adjusted EBITDA margin was 65.2% in the quarter.
The company recognized a gain of $46.4 million on the sales of the Vodafone Idea Limited (“VIL”) shares and the VIL optionally convertible debentures (“OCD”) for the quarter ended June 30, 2024. As of the same date, none of the VIL Shares or the VIL OCDs remained outstanding.
Property Operations
Revenues were $2.85 billion, up 4.6% on a year-over-year basis. Total operating profit was $1.93 billion, and the operating profit margin was 67%.
In the Property segment, revenues from the United States and Canada totaled $1.32 billion, up marginally year over year. Total international revenues amounted to $1.31 billion, rising 7%. Newly formed Data Centers added $231 million to Property revenues, up 12.7% from $205 million in the prior-year period.
Service Operations
Revenues totaled $47.4 million in the reported quarter, up from $43.1 million in the prior-year quarter. The operating profit was $21 million and the operating profit margin was 44% in the April-June quarter.
Cash Flow & Liquidity
In the second quarter, American Tower generated $1.34 billion of cash from operating activities, rising 10.7% year over year. Free cash flow in the period was $1.01 billion, jumping 27.5% from a year ago.
As of Jun 30, 2024, the company had $9.2 billion in total liquidity. This comprised $2.5 billion in cash and cash equivalents and availability of $6.7 billion under its revolving credit facilities (net of any outstanding letters of credit).
2024 Guidance Raised
American Tower anticipates total property revenues of $11,100 -$11,280 million, suggesting a year-over-year improvement of 1.7% at the mid-point. The earlier guided range was $11,080 -$11,260 million.
The adjusted EBITDA was revised upward to $7,250-$7,360 million from $7,120-$7,230 million stated earlier. This indicates a year-over-year mid-point increase of 3.1%.
The AFFO attributable to AMT common stockholders is now expected to be in the band of $4,905-$5,015 million, implying 7.6% year-over-year growth at the mid-point. The company’s prior expectations ranged from $4,820-$4,930 million.
AFFO per share is revised upward to $10.48-$10.72, indicating a rise at the mid-point of 7.4%. The prior projected range was $10.30-$10.53. The Zacks Consensus Estimate for the same is pegged at $10.45, which is below the company’s guided range.
It increased the guidance for capital expenditure between $1,600-$1,710 million from the prior guided range of $1,545-$1,655 million.
Currently, AMT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Tower Corporation Price, Consensus and EPS Surprise
American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote
Performance of Other REITs
Prologis, Inc. (PLD - Free Report) reported second-quarter 2024 core funds from operations (FFO) per share of $1.34, outpacing the Zacks Consensus Estimate by a penny. This compares unfavorably with the year-ago quarter’s figure of $1.83.
The quarterly results reflect a rise in rental revenues and healthy leasing activity. However, high interest expenses are an undermining factor. In addition, PLD increased its 2024 core FFO per share guidance range.
Crown Castle Inc. (CCI - Free Report) reported second-quarter 2024 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.
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.