After Crown Castle International Corp (REIT)’s (NYSE:CCI) earnings announcement in June 2018, analysts seem highly optimistic, with profits predicted to ramp up by an impressive 57% next year, compared with the previous 5-year average growth rate of 23%. With trailing-twelve-month net income at current levels of US$392m, we should see this rise to US$618m in 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Crown Castle International (REIT) in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How will Crown Castle International (REIT) perform in the near future?
The 18 analysts covering CCI view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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.
This results in an annual growth rate of 22% based on the most recent earnings level of US$386m to the final forecast of US$949m by 2021. EPS reaches $2.25 in the final year of forecast compared to the current $1.01 EPS today. Growth in earnings appears to be a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. In 2021, CCI’s profit margin will have expanded from 8.9% to 17%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Crown Castle International (REIT), there are three relevant aspects you should further research:
- 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.
- 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.
- 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!
To help readers see past 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. For errors that warrant correction please contact the editor at firstname.lastname@example.org.