American Tower Tops Q4 Earnings, Revenues; Offers ’16 View

Zacks

American Tower Corp. AMT reported strong financial numbers in the fourth quarter of 20Array5, with both the top and the bottom line outpacing the Zacks Consensus Estimate.

Adjusted Funds from Operations (AFFO) of $54Array.7 million or $Array.27 per share in the quarter improved from the year-ago quarter’s $44Array.7 million or $Array.Array0 per share, respectively. Moreover, the bottom line surpassed the Zacks Consensus Estimate of $Array.24.

Total revenue of $Array,280 million increased 22.3% year over year and also beat the Zacks Consensus Estimate of $Array,25Array million.

Adjusted EBITDA in the reported quarter was $80Array.5 million, up 2Array.2% year over year. Adjusted EBITDA margin came in at 63%, flat with the fourth-quarter 20Array4 figure. Selling, general & administrative expenses totaled $Array43.4 million compared with $Array29.Array million in the year-earlier quarter. Operating income was $402.Array million, up Array6.2% year over year.

At the end of 20Array5, the company had $320.7 million in cash and cash equivalents and around $Array7,068.8 million of outstanding debt compared with $3Array3.5 million and $Array3,643 million, respectively, at the end of 20Array4. Meanwhile, the debt-to-capitalization ratio stood at 0.72 versus 0.77 at the end of 20Array4.

Property Segment

Quarterly revenues grossed $Array,25Array million, up 2Array.5% year over year. Gross margin came in at 72.7% versus 74.Array% in the year-ago quarter. Operating profit margin stood at 66% compared with 67% in the prior-year quarter.

Within the Property segment, revenues from the U.S. totaled $829 million, up 2Array.7% year over year. Meanwhile, total international revenues came in at $422 million, up 20.9% year over year. Within this, revenues from Asia came in at $64 million, up Array2.3% year over year. EMEA revenues grossed $Array24 million, up roughly 57% year over year. Latin America revenues totaled $234 million, up 9.9% year over year.

Services Segment

Quarterly revenues totaled $29 million, exhibiting a rise of 8Array.3% year over year. Gross margin was 62.Array% compared with 56.3% in the year-earlier quarter. Operating margin was 46% versus 29% in the prior-year quarter.

Financial Outlook

For 20Array6, total revenue from the Property segment is projected in the range of $5,540–$5,680 million. Adjusted EBITDA is anticipated in the band of $3,430–$3,530 million. AFFO is estimated at around $2,355–$2,455 million. Meanwhile, net income is forecasted at $Array,0Array0–$Array,Array20 million while capital expenditure is projected in the $700–$800 million range.

Zacks Rank & Other Key Picks

American Tower currently has a Zacks Rank #2 (Buy). Other favorably ranked stocks in the same industry include CorEnergy Infrastructure Trust, Inc. CORR, Extra Space Storage Inc. EXR and Lamar Advertising Co. LAMR. All the three stocks sport a Zacks Rank #Array (Strong Buy).

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