American Tower Corporation
) is scheduled to report fourth-quarter 2013 financial results
before the opening bell on Feb 25, 2014.
In the prior quarter, the company's earnings lagged the Zacks
Consensus Estimate by a margin of 15.1%. Let's see how
things are shaping up for this announcement.
Factors to Influence This Quarter
American Tower is rapidly expanding in the international
markets, especially in the emerging Asian and Latin American
markets. Although this geographic diversification will boost
revenues, it may jeopardize the bottom line. Tower operations in
the emerging markets are not as profitable as that in the mature
Despite increased deployment of 3G/4G network by carriers
across the world and aggressive buyouts of towers in emerging
markets, the company is exposed to stiff competition and new
Customer concentration is very high for American Tower, and
the top four customers accounted for nearly 60% of its quarterly
revenues. The loss of any of these customers or consolidation
among these wireless carriers will have a significant material
impact on the company's top line.
Our proven model does not conclusively show that American
Tower is likely to beat the Zacks Consensus Estimate this
quarter. This is because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.The Sell-rated
stocks (#4 and 5) should never be considered going into an
The Most Accurate estimate and the Zacks Consensus Estimate are
poised at $0.47. Hence, the ESP is 0.00%.
American Tower's Zacks Rank #3 (Hold) decreases the predictive
power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter.
Winthrop Realty Trust
) with earnings ESP of +12.50% and Zacks Rank #1 (Strong
Physicians Realty Trust
) with earnings ESP of +21.43% and Zacks Rank #3.
Cablevision Systems Corp.
) with earnings ESP of +33.33% and Zacks Rank #3.
AMER TOWER CORP (AMT): Free Stock Analysis
CABLEVISION SYS (CVC): Free Stock Analysis
PHYSICIANS RLTY (DOC): Free Stock Analysis
WINTHROP REALTY (FUR): Free Stock Analysis
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