Crown Castle International Inc.
) is slated to release its second quarter 2012 results on
Wednesday, July 25, after the closing bell. The current Zacks
Consensus Estimate for the second quarter is pegged at 39 cents,
representing an annualized growth of 328.65%.
With respect to earnings surprise over the trailing four
quarters, Crown Castle has outperformed the Zacks Consensus
Estimate in three of the last four quarters. The average earnings
surprise was a positive 6.96%, implying that the company has
outdone the Zacks Consensus Estimate by the same magnitude in three
out of the last four quarters.
On April 25, 2012, CCI declared its financial results for the
first quarter of fiscal 2012. The results were in line with the
Zacks Consensus Estimates. Quarterly GAAP net income was
approximately $50.3 million or 17 cents per share compared with a
net income of $40 million or 12 cents per share in the year-ago
quarter. First-quarter 2012 EPS of 17 cents was in line with the
Zacks Consensus Estimate.
Net revenue in the reported quarter was $551.7 million, up 10.6%
year over year, exceeding the Zacks Consensus Estimate of $521
million. This growth was primarily attributable to improved
performance in the Site Rental segment.
Gross margin in the reported quarter was 72.0% compared with
70.8% in the year-ago quarter. Operating income was $202.2 million
compared with $166.4 million in the prior-year quarter.
Agreement of Estimate Revisions
Of the 19 analysts covering the stock in the last 30 days, none
of the analysts revised the estimate upward for the second quarter
of 2012. Likewise, out of the 18 analysts covering the stock, none
revised their estimates for the third quarter of 2012.
However, for fiscal 2012, out of the 19 analysts covering the
stock, one analyst increased the EPS estimate but none moved in the
opposite direction, over the last 30 days. For fiscal 2013, none of
the19 analysts revised their estimates in the last 30 days.
Magnitude of Estimate Revisions
Due to lack of any estimate revisions, the current Zacks
Consensus Estimates for the current and the next quarter of fiscal
2012 has remained stable over the last 30 days, at 39 cents and 11
For fiscal 2012 and 2013, the current Zacks Consensus Estimate
was flat compared with earlier estimates of $0.79 and $1.01,
The current Zacks Consensus Estimates for Crown Castle contains
a 7.69% upside potential but the upcoming quarter is reflecting a
9.09% downside risk (essentially a proxy for future earning
surprises). Likewise, for fiscal 2012, the Zacks Consensus
Estimates contains a growth potential of 2.53% and for fiscal 2013,
the downside potential is 2.97%.
Despite huge debt, and stiff competition from
American Tower Corp.
SBA Communications Corp.
), we believe that strong financial outlook, and continuous
acquisition of towers coupled with increased roll outs of 3G/4G
high speed mobile voice, data, and video technology and higher
adaptation of smartphones will act as positive catalysts for the
stock, going forward.
We, maintain our long-term Neutral recommendation on Crown
Castle. Currently, Crown Castle holds a Zacks #1 Rank, implying a
short-term Strong Buy rating.
AMER TOWER CORP (AMT): Free Stock Analysis
CROWN CASTLE (CCI): Free Stock Analysis Report
SBA COMM CORP (SBAC): Free Stock Analysis
To read this article on Zacks.com click here.