American Tower 3Q Profit Jumps 11%, Revenue Beats Views
DOW JONES NEWSWIRES
American Tower Corp.'s (AMT) third-quarter profit rose 11% as demand remained
strong for the cell-tower operator's antennas, producing revenue that beat
analysts' estimates.
Cell-tower operators have benefited from volume increases as wireless carriers
continue to grow, prompting them to spend more on upgrades. In October, American
Tower said it planned to generate about $600 million to pay back debt by issuing
new senior notes.
Also in October, Moody's Investors Service raised by a notch its debt ratings
on American Tower, putting the company's debt into investment-grade territory.
It said demand for the wireless tower sector was likely to remain favorable
through the next several years.
American Tower--which has communications sites in the U.S., Mexico, Brazil and
India--reported a profit of $67.4 million, or 17 cents a share, up from $60.5
million, or 15 cents, a year earlier. Revenue jumped 8.5% to $444.1 million.
Analysts polled by Thomson Reuters had most recently forecast earnings of 17
cents on $430 million in sales.
Operating margin rose to 40.3% from 37.7%.
The company, which reaffirmed its 2009 outlook, saw revenue at its rental and
management segment--by far its largest--jump 9.2%.
Shares closed at $37.13 Monday and were inactive premarket. The stock is up
27% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-03-090736ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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