Wed, Jul. 29, 10:08 AM
- American Tower (NYSE:AMT) is off in early action, -2.2%, after Q2 revenue that grew 13.6% missed expectations slightly.
- Net income fell 43.8%, to $129M, mainly due to $75M in one-time debt retirement costs. Total rental and management revenue grew 14.8% (core growth of 23.2%, and organic core growth of about 7.3%).
- Revenue by segment: Domestic rental and management, $803M (up 21.7%); International rental and management, $351M (up 1.6%); Network Development Services, $20M.
- Cash from operations fell 3.3% to $1.036B for the first half.
- AMT raised its full-year guidance on AFFO to $2.095B-$2.135B (midpoint up 16.5%); adjusted EBITDA of $3.02B-$3.06B (midpoint up 14.7%); and total rental and management revneue of $4.645B-$4.695B (midpoint up 16.6%). Net income is expected at $705M-$735M (midpoint down 10.4%).
- That outlook includes a one-time charge of $92M it expects to take after filing a tax election after which Global Tower Partners REIT wouldn't operate as a separate REIT for tax purposes.
- Press Release
Fri, Jul. 10, 11:18 AM
- American Tower (NYSE:AMT) is up 1% as Pacific Crest boosts its price target to $116, from $114.
- Shares closed yesterday at $94.37 and are currently up to $95.32. Pacific Crest maintains an Overweight rating on the stock.
- The analysts point to its $1.05B acquisition of 4,700 towers from Bharti Airtel in noting that international expansion is critical to American Tower's growth.
- AMT expects international operations to increase organic core revenue 10%, Pacific Crest says.
Mon, Jun. 29, 5:46 PM
- Comcast (NASDAQ:CMCSA) and Twenty-First Century Fox (FOX, FOXA) top the media picks on Barclays' top picks list out today, and SBA Communications (NASDAQ:SBAC) leads the firm's telecom sector picks.
- Comcast has an EV smaller than Disney's -- but an EBITDA 60% larger, as well as comparable free cash flow and EBITDA growth, and is the only vertically integrated media play, Barclays says. It has a $68 price target; shares finished today -1.7% to $59.98.
- Fox, meanwhile, has "the most attractive name" in Barclays' media and advertising coverage; risks over downward guidance revisions and the Murdoch transition are well understood, and the company is outpacing others on growth and has exposure to key international markets. Barclays' price target: $39; FOXA closed today -2% to $32.29.
- SBAC, meanwhile, replaces American Tower (NYSE:AMT) as Barclays' top telecom pick, in part due to the company's buyback authorization. With industry fundamentals improving, the bank expects SBAC to deliver AFFO growth of 15%-20% per year, better than peers, and it sees 15% share price upside. The price target is $136; SBAC finished today -1.4% to $115.62.
Wed, Apr. 1, 5:07 PM
- American Tower (NYSE:AMT) gained 2.5% as Raymond James upgraded shares to Strong Buy, from Outperform.
- Rollout of wireless companies' new spectrum should restart revenue growth in 2016, RJ's Ric Prentiss says, pointing to "second-half 2015 and 2016 leasing trends" with T-Mobile deploying its low-band spectrum, Sprint expanding its high-band, and AT&T and Verizon "spending a steady amount of wireless capex."
- It's a bit of a rebound for a stock that's down 8% from its November high.
- The analysts set a slightly lower price target on the stock, to $112 from $114. Shares closed today at $96.46.
Fri, Feb. 27, 7:31 PM
- Wind Telecomunicazioni -- the Italian unit of Russian telecom VimpelCom (NASDAQ:VIP) -- may be selling its wireless towers to Spain's Abertis Infraestructuras (OTCPK:ABRTY) as soon as the coming week.
- The companies are talking about 6,000 towers that Wind values at as much as €700M ($786M), though other observers peg the value even higher, at €800M ($914M).
- An additional 1,700 towers under discussion could easily boost the deal to that latter figure or even to €900M ($1B).
- Abertis -- chiefly in toll-road management -- is reportedly considering transferring the towers into a unit to be listed on the Madrid exchange, in order to get more cash to shareholders.
- The Spanish firm is winning the deal over competition from American Tower (NYSE:AMT), Mediaset's (OTCPK:MDIUY) EI Towers and a coalition of investment fund F2i SGR and Providence Equity Partners.
- Shares of VimpelCom closed the day up 4.8%; they tracked lower in after-hours trading, -1.5%.
Tue, Feb. 24, 4:58 PM
- American Tower (NYSE:AMT) declined 2.8% today in its first day of trading after an earnings report where the firm guided lower than expectations, as well as announcing a stock offering in connection with its planned $5B purchase of Verizon's cell towers.
- The company will offer 23.5M shares of common stock and 12.5M depositary shares (representing a 1/10 interest in a share of Mandatory Convertible Preferred Stock, Series B).
- The offerings will be separate, but concurrent. Goldman Sachs acts as lead book-runner.
- Proceeds will go to financing the Verizon transaction and associated fees.
- Previously: Verizon reaches $5B sale of towers to American Tower (Feb. 05 2015)
Thu, Jan. 22, 2:24 PM
- American Tower (AMT +1.8%) and (especially) SBA (SBAC +4.2%) are rallying after fellow tower owner Crown Castle beat Q4 revenue estimates (while slightly missing AFFO forecasts) and hiked its 2015 guidance. The S&P is up 0.9%.
- AMT (1.6% dividend yield) is $8 away from a high of $106.31. SBA is $6 away from a high of $122.79.
Dec. 2, 2014, 10:53 AM
- Raymond James has downgraded American Tower (AMT -2.5%) to Outperform from Strong Buy, and Crown Castle (CCI -2.3%) to Market Perform from Outperform. Peer SBA (SBAC -2.2%) is off in sympathy.
- AMT and SBAC have rallied strongly this year; CCI has seen more moderate gains.
- A month ago: Goldman, Macquarie downgrade AMT; CCI receives upgrade and downgrades
Oct. 30, 2014, 1:39 PM
- Though it missed Q3 EPS estimates (while beating on revenue), American Tower (NYSE:AMT) is hiking its full-year AFFO guidance to $1.8B-$1.82B from $1.755B-$1.795B.
- Also, AMT now respectively forecasts U.S. and international organic core revenue growth of 9.5% and 16%; prior guidance was for 9%+ and "nearly 15%" growth.
- Rental/management revenue guidance has been narrowed to $3.975B-$4.005B from $3.945B-$4.015B, and net income guidance lowered to $805M-$825M from $830M-$850M.
- Q3 AFFO rose 25.2% Y/Y to $460M ($1.15/share, well above EPS of $0.50).
- U.S. rental/management revenue +25.2% to $664M (+9.1% organic); international revenue +30.3% to $348M (+17.7% organic). Network development services revenue more than doubled to $27.1M.
- Rental/management op. margin slipped to 67% from 69% a year ago. AMT ended Q3 with $13.6B in net debt, and a 5.1x net leverage ratio.
- SBA (SBAC +1.4%) and Crown Castle (CCI +0.8%) are up moderately.
- Q3 results, PR
Aug. 15, 2014, 5:35 PM
Jul. 30, 2014, 12:51 PM
- In addition to beating Q2 estimates, American Tower (AMT +3.9%) is hiking its full-year AFFO guidance to $1.755B-$1.795B from $1.725B-$1.765B, and its full-year rental/management revenue guidance to $3.945B-$4.015B from $3.895B-$3.975B.
- At the midpoint, the revenue forecast assumes domestic revenue of $2.625B, and international revenue of $1.355B. Full-year core domestic revenue is expected to grow over 9% on an organic basis (accounts for acquisitions), and international organic core growth is expected to be near 15%.
- Full-year capex guidance has been hiked by $75M to $925M-$1.025B. Discretionary capex is expected to total $480M-$540M, and cover the buildout of 2,250-2,750 new sites.
- Organic core revenue grew 11.4% Y/Y in Q2 in the U.S., and 17.9% internationally. Gross margin fell 120 bps Y/Y to 74.1%; segment op. margin was steady at 68%.
- AMT's site portfolio grew by 1,112 Q/Q to 68,822. 642 were constructed, 508 acquired, and 38 lost due to adjustments. Strong 4G buildout activity is providing a boost to site demand.
- Q2 results, PR
Feb. 25, 2014, 4:01 PM
- Thanks partly to acquisitions, American Tower (AMT -3.4%) expects its 2014 rental/management revenue of $3.82B-$3.91B, up from a 2013 level of $3.29B. AFFO is expected to grow to $1.68B-$1.74B from 2013's $1.47B, and capex is expected to be in a range of $850M-$950M.
- While total revenue rose 22.6% Y/Y in Q4, organic core revenue rose 11.2% - 8.7% domestic, 13.5% international. Total domestic revenue +24.6% Y/Y to $622.7M, total international revenue +25.6% to $301.2M.
- Op. margin was flat Y/Y at 68%. AMT ended 2013 with 67K+ sites, and expects to construct 2,250-2,750 new sites in 2014.
- The company ended the year with $14.5B in debt, and $294M in cash/equivalents.
- Q4 results, PR
Nov. 11, 2013, 8:41 AM
- Twitter (TWTR) has been started at Neutral by Sterne Agee. Shares -1.4% premarket after dropping 7% on Friday in the wake of neutral/bearish coverage launches. Shares still +58% from their $26 IPO price.
- Veeva Systems (VEEV) has received four bullish ratings and two neutral ones on underwriter coverage day. Shares +0.6%.
- American Tower (AMT) has been upgraded to Buy by Citi.
- Youku (YOKU) has been upgraded to Buy by Brean ahead of Thursday's Q3 report. Shares +3.1%.
- BT has been upgraded to Overweight by JPMorgan after outbidding Sky for the U.K. TV rights to Champions League games.
- Netgear (NTGR) has been upgraded to Sector Perform by RBC.
- Deutsche Telekom (DTEGY, DTEGF) has been cut to Sell by Goldman after striking a $729M deal to buy wireline carrier GTS Central Europe.
- Lam Research (LRCX) has been cut to Neutral by Susquehanna.
- Diodes (DIOD) has been cut to Outperform from Strong Buy by Raymond James ahead of tomorrow's Q3 report.
Sep. 16, 2013, 9:45 AM
- American Tower (AMT +1.6%) has been upgraded to Buy by Nomura 10 days after the company announced its $4.8B purchase of Global Tower Partners. Nomura apparently has a different view of the cell tower owner than Muddy Waters.
- EZchip (EZCH -1.1%) has been cut to Market Perform by Oppenheimer four days after Cisco unveiled its nPower X1 network processor.
- Gigamon (GIMO -3.3%) has been cut to Market Perform by Raymond James.
Sep. 6, 2013, 10:15 AM
- SBA (SBAC +2.1%) and Crown Castle (CCI +3.2%) have joined American Tower (AMT +4.4%) in rallying following news AMT is acquiring giant private cell tower owner Global Tower Partners for $4.8B ($3.3B in cash + the assumption of $1.5B in debt).
- The WSJ reported a month ago Global Tower, controlled by a REIT managed by Macquarie, was being shopped. The company owns 5.4K U.S. towers and 500 Costa Rican sites, and also has management rights to 9K+ U.S. sites (mostly rooftop assets) and property interests in another 800.
- The deal is expected to close in Q4, and will increase the size of AMT's debt load to $10.3B (offset by just $1B in cash/investments). The announcement comes a month after AMT announced an $811M Mexican/Brazilian tower purchase/lease-back deal with NII Holdings (NIHD +1.4%), and 10 months after it reached a deal to buy 2K German cell sites from KPN for $502M. NII has additional tower assets that could be on the block.
- In July, Muddy Waters criticized the accounting behind an earlier Brazilian tower purchase by AMT. The company strongly refuted Muddy Waters' claims.
Sep. 6, 2013, 8:23 AM
- American Tower (AMT) announces it struck a deal to acquire Global Tower Partners through its parent company for $4.8B - consisting of cash and the assumption of debt.
- The company says it sees the deal adding $345M in 2014 revenue and $270M in gross margin to its portfolio and being immediately accretive to the firm's results.
- AMT +3.3% premarket.
AMT vs. ETF Alternatives
American Tower Corp is an owner, operator and developer of wireless and broadcast communications real estate. The Company's main business is leasing antenna space on multi-tenant communications sites to different providers.
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