American Tower Corp. (AMT) reported mixed financial numbers for the third-quarter of 2014. Net income of $207.6 million or 50 cents per share in the quarter improved from the year-ago tally of $180.1 million or 45 cents per share. The figure, however, missed the Zacks Consensus Estimate of 56 cents per share.
Total revenue of $1,038.2 million increased 28.5% year over year and was also ahead of the Zacks Consensus Estimate of $1,035 million.
Adjusted EBITDA in the reported quarter stood at $666 million, up 26.2% year over year. Adjusted EBITDA margin came in at 64% against 65% in the third quarter of 2013. Selling, general & administrative expenses totaled $108.9 million compared with $97.8 million in the year-earlier quarter.
Operating income was $384.8 million, up 24.6% year over year. In the reported quarter, Adjusted Funds from Operations (AFFO) grew 25.2% year over year to $460 million or $1.15 per share.
At the end of the quarter under review, the company had $295.6 million in cash and marketable securities and around $12,973.8 million of outstanding debt compared with $293.6 million and $14,408.1 million at the end of 2013, respectively. Meanwhile, the debt-to-capitalization ratio stood at 0.75 against 0.80 at the end of 2013.
Domestic Rental and Management Segment
Quarterly revenues were $663.6 million, up 25.2% year over year. Gross margin came in at 79.8% versus 82% in the year-ago quarter. Operating profit margin declined 2% year over year to 75%.
International Rental and Management Segment
Quarterly revenues grossed $347.5 million, signifying a 30.3% year-over-year increase. Gross margin for the segment was 61% compared with 63.6% in the year-ago quarter. Operating margin stood at 51%, down 1% year over year.
Network Development Services Segment
Quarterly revenues totaled $27 million, exhibiting an increase of 139.4% year over year. Gross margin was 56.6% compared with 57.7% in the year-ago quarter. Operating margin was 45% versus 41% in the year-earlier quarter.
Tower Count
At the end of the third quarter of 2014, American Tower managed 69,519 communications towers. Geographically, the company operates 28,394 wireless towers in the U.S. and 41,125 wireless towers outside the U.S.
Financial Outlook
In 2014, total revenue from the Rental & Management segment is likely to be in the range of $3,975–$4,005 million. Adjusted EBITDA is anticipated in the band of $2,640–$2,660 million. AFFO is estimated at around $1,800–$1,820 million. Net income is forecasted at $805–$825 million while capital expenditure is projected in the $950–$1,000 million range.
Zacks Rank
American Tower currently has a Zacks Rank #3 (Hold). Better-performing peers in the same industry include First Industrial Realty Trust Inc. (FR), Sovran Self Storage Inc. (SSS) and W. P. Carey Inc. (WPC). All three sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment