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Crown Castle International Corp. (REIT) (NYSE:CCI): What Does The Future Look Like?

Simply Wall St

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After Crown Castle International Corp. (REIT)'s (NYSE:CCI) earnings announcement in December 2018, analysts seem fairly confident, with earnings expected to grow by 25% in the upcoming year compared with the past 5-year average growth rate of 18%. By 2020, we can expect Crown Castle International (REIT)’s bottom line to reach US$697m, a jump from the current trailing-twelve-month of US$558m. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Crown Castle International (REIT)

What can we expect from Crown Castle International (REIT) in the longer term?

The longer term view from the 17 analysts covering CCI is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for CCI, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NYSE:CCI Past and Future Earnings, March 27th 2019

From the current net income level of US$558m and the final forecast of US$921m by 2022, the annual rate of growth for CCI’s earnings is 13%. EPS reaches $2.12 in the final year of forecast compared to the current $1.35 EPS today. In 2022, CCI's profit margin will have expanded from 10% to 15%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Crown Castle International (REIT), I've compiled three relevant aspects you should further research:

  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 Crown Castle International (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 Crown Castle International (REIT) is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Crown Castle International (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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.