Thu, Aug. 6, 3:39 PM
- American Tower (NYSE:AMT) is up 1.3% after Morgan Stanley, taking a fresh look at telecom towers firms, upgraded the stock to Overweight, from Equal Weight.
- Analyst Simon Flannery set a price target on the shares at $116, up from $101. The stock closed yesterday at $96.68 and is trading today at $97.85. That comes to an 18.5% upside from current prices.
- It's been a slow year for towers firms, he writes, but he likes the group going into 2016, with telecoms expected to re-accelerate spending.
- He holds an existing Overweight rating on SBA Communications (NASDAQ:SBAC) with its price target raised to $151 from $130 (shares are up 0.2% today to $120.97, implying near 25% upside) and an Overweight on Crown Castle International (NYSE:CCI) with a price target of $94 (shares are down 0.4% today to $81.91, implying near 15% upside).
Tue, Aug. 4, 8:29 PM
- Crown Castle International (NYSE:CCI) has closed on its purchase of Quanta Services' fiber unit, Sunesys, previously said to be for $1B.
- The company sold its Australian unit -- CCAL, Australia's leading tower operator -- for A$2B (about $1.6B) with the intent to finance the purchase of Sunesys and refocus on its U.S. network.
- Sunesys owns or has right to nearly 10,000 miles of fiber in the U.S.
- Crown Castle will update its full-year outlook to reflect the closing in its Q3 report.
Mon, Aug. 3, 4:37 PM
Wed, Jul. 22, 4:31 PM
- Crown Castle International (NYSE:CCI) is up 0.7% after hours, following a Q2 report where it missed revenue expectations but raised its outlook for 2015.
- A forecast that includes significant investment by wireless carriers in their networks "gives us confidence in our ability to achieve our stated goal of generating compounded annual growth in AFFO per share of 6% to 7% organically over the next five years," says CEO Ben Moreland.
- Site rental revenues came in at $737M, above the adjusted midpoint of its outlook. (As of this quarter, CCI is treating its sold-off Australian subsidiary CCAL as a discontinued operation for comp purposes.) Site rental gross margin was $500M, just over its outlook of $499M.
- The company raised full-year guidance for its adjusted EBITDA by $27M, to $2.081B (vs. a consensus of $2.13B), and increased adjusted FFO outlook by $14M, to 1.413B (coming to $4.23/share). It now expects site rental revenues to come in $21M higher, to $2.954B.
- Conference call is tomorrow at 10:30 a.m. ET.
- Press Release
Wed, Jul. 22, 4:17 PM
Tue, Jul. 21, 5:35 PM| 5 Comments
Tue, Jul. 21, 10:32 AM
- Crown Castle International (NYSE:CCI) is down 1% after Evercore downgraded shares to Hold.
- The consensus rating of covering analysts on CCI is Hold. Last month, however, BTIG launched coverage at Buy with a $95 price target.
- Consensus price target of nearly $92 implies a 12% upside from current prices.
- The company is releasing earnings after the market close tomorrow, with a conference call to follow on Thursday morning at 10:30 a.m. ET.
- CCI shares are down 5.7% over the past three months, but are up 3.1% YTD.
Wed, Jun. 17, 10:36 PM
- Crown Castle (NYSE:CCI) may be the wireless tower operator that benefits most from the growing emphasis on "small cell" deployments, Reinhardt Krause suggests.
- The Houston-based tower operator spent $1B each on small-cell specialists Sunesys and (four years ago) NextG -- and has a key customer, Verizon (NYSE:VZ), pushing into small cells as its 4G LTE network gets stuffed.
- Small cells -- roughly suitcase-sized modules that fit well in outdoor public spaces -- are useful for filling in coverage gaps between full-sized towers and solving urban coverage challenges. But Verizon also may see it as a chance to tap unlicensed spectrum if the government establishes Wi-Fi-like networks.
- The catch is if small cells end up displacing full-size towers, which have nice profit margins. But many see the two approaches as complementary.
- Along with Verizon, Sprint (NYSE:S) is expected to invest in small-cell deployments in 2016. "Small cells will be a central pillar of (4G) network architecture for Verizon and Sprint in the second half of 2015 and especially 2016 and for T-Mobile and AT&T moving forward," writes Macquarie's Kevin Smithen.
- Zayo Group (NYSE:ZAYO) -- a lessor of fiber connections -- is also showing interest in taking part in small cell deployments. Meanwhile, Crown Castle's fiber buys mean it can become more Zayo-like. Small cells accounted for 7% of CCI revenue in 2014, more than at competitors American Tower and SBA Communications.
Fri, May 29, 5:16 PM
- Crown Castle International (NYSE:CCI) says today it's added Anthony Melone to its board of directors.
- His appointment brings the company's board to 12 members, 10 of which are independent.
- Melone, the former CTO for Verizon and for Verizon Wireless, has more than 32 years of experience in telecom. The company points to his expertise as a help as they invest in helping carrier customers upgrading wireless networks.
Fri, May 29, 4:04 PM
Thu, May 28, 9:18 AM
- Crown Castle International (NYSE:CCI) has wrapped the sale of its Australian unit, CCAL, for A$2B (about $1.6B) to investors led by Macquarie Infrastructure and Real Assets.
- CCI owned 77.6% of CCAL and so will net proceeds of about $1.3B.
- Funds will be used for its $1B acquisition of Sunesys (the Quanta Services fiber unit) and general purposes.
Thu, May 14, 10:00 AM
- Crown Castle International (CCI +0.7%) says it will sell its Australian unit, CCAL, for about $1.6B to a Macquarie-led consortium.
- It'll use those proceeds in turn to boost its U.S. network, to finance its purchase of Quanta Services' Sunesys.
- "The sale of CCAL allows us to redeploy capital towards our growing small cell networks, which we expect will be accretive to our long-term AFFO and dividend per share growth rates," says CEO/President Ben Moreland.
- CCAL, Australia's leading tower operator, was expected to contribute $97M-$102M to CCI's 2015 EBITDA of $2.145B-$2.16B.
Fri, May 1, 11:00 AM
- As planned, Crown Castle International (NYSE:CCI) has priced $1B in senior secured tower revenue notes to be issued by indirect subsidiaries.
- Two classes of notes are on offer: $300M in notes at 3.222%, with expected life of seven years and final maturity in 2042; and $700M in notes at 3.663%, with expected life of 10 years and final maturity in 2045.
- The offering should close around May 15.
Thu, Apr. 30, 6:59 AM| Comment!
Tue, Apr. 28, 4:35 PM
- Crown Castle International (NYSE:CCI) says its indirect subsidiaries will offer senior secured notes tied to tower revenues.
- The company says it expects any offered notes will be investment grade, and will use funds to roll over existing notes and for general purposes.
- Servicing and repayment of the notes would come only from the cash flow of the towers tied to the transaction. CCI has a current ratio of 1.04 and total debt/assets is 56.4.
Wed, Apr. 22, 6:31 PM
- Crown Castle International (NYSE:CCI) posted adjusted funds from operations that grew 10% to $383M in Q1, while revenues were up 7.4%.
- Adjusted EBITDA of $554M (up 5%) beat expectations of $543.8M, and that and AFFO benefited from some $9M in network services that had been expected to occur in the second quarter, as well as about $6M in lower-than-expected sustaining capex.
- For Q1, about $205M in capex (including $24M in land purchases and $17M in sustaining capex). Net debt-to-EBITDA was about 5.3x.
- The company's expecting wireless demand to grow significantly, "with one industry estimate projecting a seven-fold increase in US mobile data traffic between 2014 and 2019," says CEO Ben Moreland.
- Moreland thinks the company's portfolio of towers and small cells is well aligned to expected demand, "providing us with confidence in our ability to deliver on our stated goal of generating compounded annual growth in AFFO per share of 6% to 7% organically over the next five years."
- CCI has bumped the midpoint of its 2015 guidance for site rental revenues, site rental gross margin, Adjusted EBITDA and AFFO by approximately $7M, $3M, $3M and $3M, respectively.
- Conference call tomorrow at 10:30 a.m. ET.
- Press release
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