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American Tower (AMT) Up 4.9% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for American Tower Corporation (REIT) (AMT - Free Report) . Shares have added about 4.9% in that time frame, outperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
American Tower Beats on Q4 Earnings, Revenues Lag
Quarterly adjusted Funds from Operations (AFFO) of $631 million were up 17% year over year. AFFO per share was $1.47, up 16.7% year over year. Moreover, the AFFO figure surpassed the Zacks Consensus Estimate of $1.42.
Total revenue of $1,539.6 million increased 20.3% year over year but missed the Zacks Consensus Estimate of $1,550 million.
Adjusted EBITDA in the reported quarter was $936 million, up 16.7% year over year. Adjusted EBITDA margin came in at 60.8%, flat year over year. Selling, general & administrative expenses totaled $138.3 million compared with $143.4 million in the year-earlier quarter. Operating income was $489.3 million, up 21.7% year over year.
In the fourth quarter of 2016, American Tower generated $725 million of cash from operations, up 13.4% year over year. Free cash flow in the reported quarter was $513 million, up 19.6% year over year.
At the end of 2016, the company had $787.2 million in cash and cash equivalents and around $18,294.7 million of outstanding long-term debt compared with $320.7 million and $17,068.8 million, respectively, at the end of 2015.
Property Segment
Quarterly revenues grossed $1,521 million, up 21.6% year over year. Operating profit margin was pegged at 63% compared with 66% in the prior-year quarter.
Within the Property segment, revenues from the U.S. totaled $852 million, up 2.8% year over year. Meanwhile, total international revenues came in at $670 million, up 58.8% year over year. Within this, revenues from Asia came in at $270 million, increasing a whopping 321.9% year over year. EMEA revenues grossed $134 million, up roughly 8.1% year over year. Latin America revenues totaled $265 million, up 13.2% year over year.
Services Segment
Quarterly revenues totaled $18 million, reflecting a decline of 37.9% year over year. Operating margin was 50% compared with 46% in the prior-year quarter.
Outlook for 2017
For 2017, American Tower anticipates property revenues in the band of $6,210–$6,390 million. Net income will be $1,175–$1,245 million. Adjusted EBITDA is estimated in the range of $3,810–$3,910 million. Consolidated AFFO will likely be $2,700–$2,800 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter.
American Tower Corporation (REIT) Price and Consensus
At this time, American Tower's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for growth based on our styles scores.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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American Tower (AMT) Up 4.9% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for American Tower Corporation (REIT) (AMT - Free Report) . Shares have added about 4.9% in that time frame, outperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
American Tower Beats on Q4 Earnings, Revenues Lag
Quarterly adjusted Funds from Operations (AFFO) of $631 million were up 17% year over year. AFFO per share was $1.47, up 16.7% year over year. Moreover, the AFFO figure surpassed the Zacks Consensus Estimate of $1.42.
Total revenue of $1,539.6 million increased 20.3% year over year but missed the Zacks Consensus Estimate of $1,550 million.
Adjusted EBITDA in the reported quarter was $936 million, up 16.7% year over year. Adjusted EBITDA margin came in at 60.8%, flat year over year. Selling, general & administrative expenses totaled $138.3 million compared with $143.4 million in the year-earlier quarter. Operating income was $489.3 million, up 21.7% year over year.
In the fourth quarter of 2016, American Tower generated $725 million of cash from operations, up 13.4% year over year. Free cash flow in the reported quarter was $513 million, up 19.6% year over year.
At the end of 2016, the company had $787.2 million in cash and cash equivalents and around $18,294.7 million of outstanding long-term debt compared with $320.7 million and $17,068.8 million, respectively, at the end of 2015.
Property Segment
Quarterly revenues grossed $1,521 million, up 21.6% year over year. Operating profit margin was pegged at 63% compared with 66% in the prior-year quarter.
Within the Property segment, revenues from the U.S. totaled $852 million, up 2.8% year over year. Meanwhile, total international revenues came in at $670 million, up 58.8% year over year. Within this, revenues from Asia came in at $270 million, increasing a whopping 321.9% year over year. EMEA revenues grossed $134 million, up roughly 8.1% year over year. Latin America revenues totaled $265 million, up 13.2% year over year.
Services Segment
Quarterly revenues totaled $18 million, reflecting a decline of 37.9% year over year. Operating margin was 50% compared with 46% in the prior-year quarter.
Outlook for 2017
For 2017, American Tower anticipates property revenues in the band of $6,210–$6,390 million. Net income will be $1,175–$1,245 million. Adjusted EBITDA is estimated in the range of $3,810–$3,910 million. Consolidated AFFO will likely be $2,700–$2,800 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter.
American Tower Corporation (REIT) Price and Consensus
American Tower Corporation (REIT) Price and Consensus | American Tower Corporation (REIT) Quote
VGM Scores
At this time, American Tower's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for growth based on our styles scores.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.