Crown Castle International Corp.
) is slated to report its first-quarter 2014 financial numbers
after the closing bell on April 23, 2014.
Why a Likely Positive Surprise?
Our proven model shows that Crown Castle International is likely
to beat earnings because it has the right combination of two key
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +3.57%. The
Zacks Consensus Estimate is poised at 28 cents, whereas the Most
Accurate estimate stands at 29 cents. This is a meaningful and
leading indicator of a likely positive earnings surprise.
Crown Castle International currently has a Zacks Rank #3 (Hold).
Note that stocks with Zacks Ranks of #1 (Strong Buy), 2 (Buy) or
3 (Hold) have significantly higher chances of beating earnings.
The Sell-rated stocks (Zacks Rank #4 and 5) should never be
considered going into an earnings announcement.
The combination of Crown Castle International's Zacks Rank #3 and
+3.57% ESP makes us confident of positive earnings beat this
What Will Drive the Better-Than-Expected
We expect an impressive performance from Crown Castle
International as an extensive tower portfolio, successful
integration of the
) business, expansion of the small cell business, increased
smartphone usage and aggressive deployment of 4GLTE network are
likely to boost the company's results in the coming quarter.
Wireless services are advancing rapidly in terms of additional
features and capabilities. Much of the infrastructure and
upgrades require effective site management of cell towers and
equipment. Crown Castle effectively addresses this opportunity as
95% of its quarterly revenues come from wireless service
The company has long-term (typically 5-10 years) tower lease
agreements with the top four U.S. carriers, which contribute
nearly 84% of its revenues. Thus, these agreements make
management confident of generating nearly $21 billion of revenues
in the next 8 years.
On the downside, evolution of new technologies may reduce the
demand for site leases. The recent developments of
satellite-delivered radio and video services will lower the need
for tower-based broadcast transmission. In addition, frequent
changes in demand for network services and infrastructure support
will increase the volatility of the company's revenues.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that these have the right combination of
elements to post an earnings beat this quarter include:
America Movil S.A.B. de C.V.
) with Earnings ESP of +9.76% and Zacks Rank #3.
) with Earnings ESP of +11.11% and Zacks Rank #3.
AMER MOVIL-ADR (AMX): Free Stock Analysis
CROWN CASTLE (CCI): Free Stock Analysis
GEO GRP INC/THE (GEO): Free Stock Analysis
RIGNET INC (RNET): Free Stock Analysis Report
T-MOBILE US INC (TMUS): Free Stock Analysis
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The GEO Group, Inc.
) with Earnings ESP of +12.07% and Zacks Rank #1 (Strong