American Tower Earnings: Here’s Why Investors are Selling Shares Now

American Tower Corp. (NYSE:AMT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2%.

American Tower Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 108.33% to $0.25 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Rose 15.92% to $808.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Tower Corp. reported adjusted EPS income of $0.25 per share. By that measure, the company missed the mean analyst estimate of $0.52. It missed the average revenue estimate of $814.74 million.

Quoting Management: Jim Taiclet, American Tower’s Chief Executive Officer stated, “During the second quarter of 2013, our Core results significantly outperformed our internal expectations as demand for tower space drove robust leasing activity across our global portfolio. The combination of our extensive, high quality asset base and long-term master lease agreements with leading mobile operators resulted in strong growth in each of our key operating metrics.”

Key Stats (on next page)…

EPS decreased 41.86% from $0.43 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.55 to a profit $0.54. For the current year, the average estimate has moved down from a profit of $2.09 to a profit of $2.06 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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