American Tower Earnings Cheat Sheet: Robust Environment Yields 23% Sales Jump

S&P 500 (NYSE:SPY) component American Tower Corporation (NYSE:AMT) reported its results for the first quarter. American Tower Corporation is a wireless and broadcast communications infrastructure company that develops, owns, and operates communications sites throughout the country. Among its holdings are wireless communications towers, broadcast communications towers and distributed antenna system.

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American Tower Earnings Cheat Sheet for the First Quarter

Results: Net income for the diversified communication services company fell to $91.8 million (23 cents/share) vs. $96.3 million (24 cents/share) a year earlier. A decline of 4.6% from the year earlier quarter.

Revenue: Rose 23.8% to $562.7 million YoY.

Actual vs. Wall St. Expectations: AMT fell in line with the mean analyst estimate of 23 cents/share. Estimates ranged from 20 cents per share to 28 cents per share.

Quoting Management: Jim Taiclet, American Tower’s Chief Executive Officer stated, “Our financial results for the first quarter demonstrate the robust environment in the U.S. wireless market, driven by immense growth in demand for broadband data services, and the ongoing success of our international expansion strategy. To address the rapid growth in data services, some of our U.S. wireless customers are pursuing strategic initiatives to improve their networks’ ability to meet those needs. We support these types of initiatives, which will enable our customers to deploy next generation services to more subscribers rapidly and efficiently. During the next few years, we anticipate the deployment of three to four national 4G networks in the U.S., which will provide significant opportunity for ongoing revenue growth.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 16.8%, with the biggest boost coming in the most recent quarter when revenue rose 23.8% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 29.8% from the year earlier while the figure increased 38.7% in third quarter of the last fiscal year, 77.1% four quarters ago and 64.4% five quarters earlier.

From the fourth quarter of the last fiscal year, the company’s current liabilities rose to $826.4 million from $542.2 million.

Competitors to Watch: Crown Castle Intl. Corp. (NYSE:CCI), SBA Communications Corp. (NASDAQ:SBAC), Syniverse Holdings, Inc. (NYSE:SVR), AT&T Inc. (NYSE:T), Neustar, Inc (NYSE:NSR), WPCS International Inc. (NASDAQ:WPCS), Telephone & Data Systems, Inc. (NYSE:TDS), Comtech (NASDAQ:CMTL), Sprint Nextel Corporation (NYSE:S), and Verizon Communications Inc. (NYSE:VZ)

Stock Performance: Shares of AMT are up almost 1% to $51.91 per share in pre-market trading.


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