American Tower (AMT) Q2 AFFO Tops Estimate, Revenues Miss
American Tower Corporation AMT reported second-quarter 2020 adjusted funds from operations (AFFO) per share of $2.07, beating the Zacks Consensus Estimate of $2.05. Further, the reported figure improved 1.5%, year over year.
The company generated total revenues of $1.91 billion, which missed the Zacks Consensus Estimate of $1.95 billion. Nonetheless, the figure improved 1.2% year over year.
The company witnessed strong organic tenant billing growth. However, results were adversely impacted by a decline in revenues in the Asia and Latin America property segment.
Quarter in Detail
Adjusted EBITDA in the reported quarter was $1.21 billion, up 2.4% from the prior-year quarter. Adjusted EBITDA margin was 63.3% in the second quarter of 2020. Operating income was $691.3 million, up 1.1% from the year-ago quarter’s figure.
During the second quarter, the company spent around $128 million to acquire 350 communications sites primarily in international markets.
Cash Flow and Liquidity
In the second quarter of 2020, American Tower generated $989 million of cash from operating activities, declining 4.6% year over year. Free cash flow during the period was $768 million, down 2.7% year over year.
At the end of the second quarter, the company had $6.5 billion of total liquidity. This comprised $2 billion in cash and cash equivalents, and availability of $4.5 billion under its revolving credit facilities (net of any outstanding letters of credit).
Property Segment
Quarterly revenues grossed $1.89 billion, up 2.4% year over year. Operating profit was $1.24 billion and operating profit margin was 66% during second-quarter 2020.
In the Property segment, revenues from the United States totaled $1,088 million, up 8% year over year. Further, total international revenues amounted to $806 million, down 4.3% year over year.
Within this, revenues from Asia totaled $271 million, declining 15.5% year over year, while Latin America revenues totaled $294 million, down 15% year over year. Africa revenues grossed $206 million, up 45.7% year over year, while Europe revenues of $35 million improved 3.3% from the year-ago period.
Services Segment
Quarterly revenues totaled $19.8 million, down 51.4% year over year. Operating profit was $8 million and operating profit margin was 42% during the June-end quarter.
Outlook
For 2020, American Tower anticipates property revenues of $7,655-$7,785 million, reflecting a year-over-year improvement of 3.4% at the mid-point. Adjusted EBITDA is projected at $4,890-$4,970 million, indicating a mid-point increase of 3.9% from the prior year’s reported figure. Consolidated AFFO is estimated to be $3,630-$3,710 million, suggesting a year-over-year mid-point expansion of 4.2%.
Currently, American Tower carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Tower Corporation REIT Price, Consensus and EPS Surprise
American Tower Corporation REIT price-consensus-eps-surprise-chart | American Tower Corporation REIT Quote
We now look forward to the earnings releases of other REITs like Healthcare Trust of America, Inc. HTA, National Storage Affiliates Trust NSA and Iron Mountain Incorporated IRM. All three companies are scheduled to release quarterly numbers on Aug 6.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
American Tower Corporation REIT (AMT) : Free Stock Analysis Report
Iron Mountain Incorporated (IRM) : Free Stock Analysis Report
Healthcare Trust of America, Inc. (HTA) : Free Stock Analysis Report
National Storage Affiliates Trust (NSA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
