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American Tower (AMT) Tops Earnings & Revenue Estimates in Q3

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American Tower Corp (AMT - Free Report) reported impressive results in the third quarter of 2017, wherein the top and the bottom line outpaced the Zacks Consensus Estimate.

This leading international wireless tower operator’squarterly adjusted funds from operations (AFFO) of $748 million were up 16.6% year over year.  AFFO per share was $1.73, up 16.1% from the year-ago quarter. Moreover, AFFO per share of $1.73 surpassed the Zacks Consensus Estimate of $1.67.

American Tower Corporation (REIT) Price, Consensus and EPS Surprise

 

American Tower Corporation (REIT) Price, Consensus and EPS Surprise | American Tower Corporation (REIT) Quote

Total revenues of $1,680.77 million increased 10.95% year over year, beating the Zacks Consensus Estimate of $1,679.2 million.

Operating Metrics

Adjusted EBITDA in the reported quarter was $1,040 million, up 13.7% from the prior-year quarter. Adjusted EBITDA margin was 61.9% in the reported quarter. Selling, general & administrative expenses totaled $147.96 million compared with $131.53 million in the year-earlier quarter. Operating income was $561.15 million versus $479.04 million at the end of Sep 30, 2016.

Cash Flow and Liquidity

In the third quarter of 2017, American Tower generated $653 million of cash from operations, down 2.1% year over year. Free cash flow in the reported quarter was $463 million, down 8.6% year over year.

At the end of the quarter under review, the company had $799.47 million in cash and cash equivalents and around $18,581.4 million of outstanding long-term debt compared with $787.16 million and $18,294.7 million, respectively, at the end of Dec 2016.

Property Segment

Quarterly revenues grossed $1,655.35 million, versus $1,497.94 million in the year-ago quarter. Operating profit was $1,060 million and operating profit margin was 64% in the reported quarter.

Within the Property segment, revenues from the United States totaled $904 million, up 8% year over year. Meanwhile, total international revenues amounted $751 million, up 13.6% year over year. Within this, revenues from Asia totaled $298 million, up 10.4% year over year. EMEA revenues grossed $155 million, up 18.3% year over year. Latin America revenues totaled $298 million, up 14.6% year over year.

Services Segment

Quarterly revenues totaled $25.42 million, versus $16.91 million in the year-ago quarter. Operating profit was $13 million and operating profit margin was 53% in the reported quarter.

Cash Dividend Payment

In third-quarter 2017, the board of directors of American Tower declared a cash distribution of 66 cents per share to its common stockholders of record as of the closure of business on Sep 29, payable in the fourth quarter of 2017.

In addition, the company paid $19 million in preferred stock dividends during the quarter under review.

Outlook for 2017

For 2017, American Tower anticipates property revenues in the range of $6,510-$6,580 million, reflecting midpoint growth of 14.6%. Net income is expected between $1,340 million and $1,380 million, reflecting midpoint growth of 40.2%. Adjusted EBITDA is anticipated in the range of $4,070-$4,110 million, reflecting midpoint growth of 15.1%. Consolidated AFFO is expected in the range of $2,870-$2,910 million, reflecting midpoint growth of 16.0%.

American Tower competes with some major wireless tower operators like Crown Castle International Corp (CCI - Free Report) , SBA Communications Corp (SBAC - Free Report) and HCP Inc (HCP - Free Report) . American Tower currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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