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American Tower -2% as it looks ahead to challenge of India service

Feb. 27, 2018 11:00 AM ETAmerican Tower Corporation (AMT) StockBy: Jason Aycock, SA News Editor5 Comments
  • American Tower (NYSE:AMT) is 2% lower this morning after Q4 earnings beat expectations but contained some full-year guidance for income and funds from operations below Street expectations.
  • Revenues in Q4 grew by 11% and tenant billings by 8.6%; net income fell by 16%, to $195M.
  • Adjusted FFO available to shareholders, meanwhile, rose by 9% to $688M.
  • Long-term objectives for rapid growth exceeded expectations: The company hit 150,000 sites vs. a goal of 100,000.
  • "As we look forward to 2018, we expect strong organic tenant billings growth of over 6% in the U.S., driven by unlimited data plans, increasing mobile video consumption, announced spectrum build-outs in the 2.5 GHz and 600 MHz bands and the planned FirstNet deployment," says CEO Jim Taiclet. "We also expect consistent demand for tower space in Latin America, notably in Mexico and Brazil, as well as robust activity in our key markets in the EMEA region."
  • India carrier consolidation was incorporated into guidance, and Taiclet says once activity concludes, India will be positioned for major investments for 4G service. On Nov. 13 it entered deals with Vodafone India and Idea Cellular to buy about 20,000 sites for around $1.2B.
  • Cash from operations rose nearly 10% to $794M; free cash flow rose 7% to $548M.
  • For 2018, it's guiding to total property revenue of $6.93B-$7.12B (7% growth at the midpoint); net income of $1.39B-$1.47B (16.7% growth, but below consensus for $1.59B); EBITDA of $4.3B-$4.4B (6.4% growth and above expected $4.26B); and adjusted FFO of $3.16B-$3.26B (10.6% growth), below expectations for $3.347B.
  • Press release

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