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Will American Tower Corporation (REIT)’s (NYSE:AMT) Earnings Grow In The Year Ahead?

Looking at American Tower Corporation (REIT)’s (NYSE:AMT) earnings update in December 2017, analysts seem cautiously optimistic, with profits predicted to increase by 21.90% next year relative to the past 5-year average growth rate of 13.55%. Currently with earnings of US$1.15B, we can expect this to reach US$1.40B by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here. View our latest analysis for American Tower (REIT)

Can we expect American Tower (REIT) to keep growing?

Longer term expectations from the 16 analysts covering AMT’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of AMT’s earnings growth over these next few years.

NYSE:AMT Future Profit Mar 15th 18
NYSE:AMT Future Profit Mar 15th 18

By 2021, AMT’s earnings should reach US$1.90B, from current levels of US$1.15B, resulting in an annual growth rate of 14.67%. EPS reaches $4.46 in the final year of forecast compared to the current $2.69 EPS today. The main reason for growth is a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. In 2021, AMT’s profit margin will have expanded from 17.28% to 23.43%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For American Tower (REIT), I’ve compiled three essential factors you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is American Tower (REIT) worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether American Tower (REIT) is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of American Tower (REIT)? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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