The latest earnings update Crown Castle International Corp. (REIT) (NYSE:CCI) released in December 2018 confirmed that the company experienced a strong tailwind, eventuating to a double-digit earnings growth of 44%. Below, I’ve presented key growth figures on how market analysts view Crown Castle International (REIT)’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Analysts’ expectations for the coming year seems positive, with earnings rising by a robust 19%. This growth seems to continue into the following year with rates arriving at double digit 44% compared to today’s earnings, and finally hitting US$919m by 2022.
Even though it’s useful to be aware of the rate of growth each year relative to today’s value, it may be more insightful gauging the rate at which the company is rising or falling every year, on average. The advantage of this technique is that we can get a better picture of the direction of Crown Castle International (REIT)’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 15%. This means that, we can presume Crown Castle International (REIT) will grow its earnings by 15% every year for the next couple of years.
For Crown Castle International (REIT), I’ve put together three key aspects you should further examine:
- 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 CCI 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 CCI is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CCI? 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.