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American Tower Second Quarter Earnings
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AMT
American Tower (NYSE:AMT) announced its results for the second quarter on August 1, 2012. American Tower develops, owns, and operates communications sites throughout the country. Among its holdings are wireless communications towers, broadcast communications towers, and distributed antenna system.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Earnings: Quality Means Everything
The Numbers: American Tower's revenues topped expectations, though the company's EPS fell short of predictions. The company reported 12 cents per share versus the 42 cents per share estimate and revenues of $697.7 million versus the $671.4 million estimate. EPS fell 58.6% while revenue climbed 16.8% from the same period last year. American Tower has averaged revenue growth of 22% over the past five quarters. American Tower reported net income of $48.2 million during the second quarter. This is a 58.2% decline from last year.
Management Quote: Jim Taiclet, American Tower's Chief Executive Officer stated, "During the second quarter, we continued to translate strong global wireless trends into solid performance. We added substantial new lease and amendment business in both the U.S. and across our global markets, and for the first time in our company's history, our international segment generated higher commenced new business than our domestic segment. As a result, we delivered Core Growth that was ahead of internal expectations in all of our key business metrics, including 23% growth in rental revenue and 24% growth in Adjusted EBITDA. Our expectations for the full year are that disciplined cost management and outperformance in our core business will exceed potential headwinds from foreign currency fluctuations, and we are therefore maintaining our full year 2012 outlook for rental revenue and raising outlook for Adjusted EBITDA and AFFO."
A Look Back: Gross margins grew to 75.3% last quarter, a 0.6 percentage point difference from the year-earlier quarter. This breaks a streak of two consecutive quarters of shrinking margins.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the third quarter has moved up from 41 cents a share to 42 cents over the last seven days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $1.67 a share to $1.81 over the last ninety days.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Earnings: Quality Means Everything
The Numbers: American Tower's revenues topped expectations, though the company's EPS fell short of predictions. The company reported 12 cents per share versus the 42 cents per share estimate and revenues of $697.7 million versus the $671.4 million estimate. EPS fell 58.6% while revenue climbed 16.8% from the same period last year. American Tower has averaged revenue growth of 22% over the past five quarters. American Tower reported net income of $48.2 million during the second quarter. This is a 58.2% decline from last year.
Management Quote: Jim Taiclet, American Tower's Chief Executive Officer stated, "During the second quarter, we continued to translate strong global wireless trends into solid performance. We added substantial new lease and amendment business in both the U.S. and across our global markets, and for the first time in our company's history, our international segment generated higher commenced new business than our domestic segment. As a result, we delivered Core Growth that was ahead of internal expectations in all of our key business metrics, including 23% growth in rental revenue and 24% growth in Adjusted EBITDA. Our expectations for the full year are that disciplined cost management and outperformance in our core business will exceed potential headwinds from foreign currency fluctuations, and we are therefore maintaining our full year 2012 outlook for rental revenue and raising outlook for Adjusted EBITDA and AFFO."
A Look Back: Gross margins grew to 75.3% last quarter, a 0.6 percentage point difference from the year-earlier quarter. This breaks a streak of two consecutive quarters of shrinking margins.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the third quarter has moved up from 41 cents a share to 42 cents over the last seven days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $1.67 a share to $1.81 over the last ninety days.
by
Investopedia Staff
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