American Tower Corporation
) touched a fresh 52-week high of $99.90 yesterday, before ending
the session a trifle lower at $99.06. Notably, year to date, this
leading wireless communication tower operator has gained nearly
The recent upside was propelled by solid second-quarter 2014
financial numbers. The company beat the Zacks Consensus Estimate
for both earnings and revenues in the second quarter. Moreover, the
company raised its revenue guidance for fiscal 2014 buoyed by
rising 4GLTE deployment.
In the second quarter American Tower's earnings came in at 58
cents per share surpassing the Zacks Consensus Estimate of 52 cents
by 11.5%. The company's earnings grew a whopping 132% on a
year-over-year basis. Total revenue of $1,031.5 million increased
27.5% year over year and also steered ahead of the Zacks Consensus
Estimate of $1,000 million.
Higher adoption of smartphones/tablets coupled with increased
deployment of 3G/4G networks by carriers across the world continues
to drive demand for tower space and in turn, drive the company's
In 2014, total revenue from the Rental & Management segment
is expected to remain in the range of $3,945-$4,015 million, up
from $3,895-$3,975 million estimated earlier. Net income is
forecasted in the band of $830-$850 million.
Further, in a bid to expand its presence in Brazil, American
Tower Corporation has decided to purchase Brazilian mobile-phone
infrastructure firm BR Towers SA, which has further boosted
Post-closure of the deal, American Tower will own nearly 2,530
towers in Brazil and exclusive use rights for almost 2,110 towers
in the country. The company expects that the acquisition of BR
Towers SA's towers will generate nearly $131 million (around 292
million Brazilian Reais) in revenues annually.
American Tower currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked stocks in this sector are Ashford Hospitality
Trust, Inc. (
), Government Properties Income Trust (
) and Pebblebrook Hotel Trust (
). All the three stocks sport a Zacks Rank #1 (Strong Buy).
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