American Tower Corporation.
) is set to unveil its third-quarter 2012 results on Wednesday,
October 31, before the opening bell. The current Zacks Consensus
Estimate for the third quarter is pegged at 38 cents, remaining
flat as compared to the year-ago quarter.
With respect to earnings surprise, Crown Castle has
outperformed the Zacks Consensus Estimate in three of the last
four quarters with an average beat of 0.79%.
On August 1, 2012, AMT declared its financial results for the
second quarter of 2012 beating the Zacks Consensus Estimates.
Quarterly GAAP net income was approximately $48.2 million or 12
cents per share compared with a net income of $115.2 million or
29 cents per share in the year-ago quarter. The company's
second-quarter 2012 earnings per share of 47 cents were
significantly above the Zacks Consensus Estimate of 41 cents.
Net revenue in the reported quarter was $697.7 million, up
16.8% year over year, almost in line with the Zacks Consensus
Estimate of $698 million.
Gross margin in the reported quarter was 75.3% compared with
74.7% in the year-ago quarter. Operating income was $270.5
million, up 19.8% year over year.
Agreement of Estimate Revisions
In the last 30 days, out of the 17 estimates, there were no
revisions in either direction for the third quarter. However, for
the fourth quarter of 2012, out of the 16 estimates, two upward
revisions were witnessed, while none moved downward over the same
For 2012, in the last 30 days, out of the 17 estimates, two
estimates were revised upward while one moved in the opposite
direction. For 2013, out of the 17 estimates, three estimates
moved north, while none moved south over the same period.
Magnitude of Estimate Revisions
Over the last 30 days, the current Zacks Consensus Estimate
has remained unchanged for the third and fourth quarter of 2012.
However, the Zacks Consensus Estimate has deteriorated by 2 cents
for 2012 over the last 30 days while the estimate for 2013 has
improved by 5 cents over the same time frame.
AmericanToweris expected to benefit from the surge in wireless
voice, broadband, data and video networks, which require more
tower space. Next-generation 4G LTE networks coupled with
increased usage of smartphones and tablets will also create
impressive demand for tower leasing. Rapid expansion in emerging
markets like Brazil and India will provide long-term sustainable
business opportunities for the company.
AmericanTowerhas a huge debt, which may hinder the company's
effort to access the debt market at favorable rates in order to
borrow and refinance its expansion plans. Additionally, the
recent acquisition of 7200 T-Mobile towers has made arch rival
Crown Castle International
), the largest tower operator in the U.S. and is expected to
provide stiff competition going forward.
We maintain our long-term Neutral recommendation on American
Tower Corporation. However, the company has a Zacks #2 Rank,
implying a short-term Buy rating.
AMER TOWER CORP (AMT): Free Stock Analysis
CROWN CASTLE (CCI): Free Stock Analysis
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