American Tower Corporation reports results for the quarter ended September 30 - Earnings Summary

What happened

American Tower Corporation reported quarterly adjusted earnings of $1.64 per share for the quarter ended September 30, down from $1.82 a year earlier. Revenue rose 2.5% to $2.79 billion, and net income was $765.8 million.

Confirmed

Global impact / market context

Lower earnings per share means less profit attributable to each share than a year earlier, even as revenue grew. Because earnings matched analyst expectations, the sales gain suggests the company kept costs in check, which supports the dividend-paying profile investors often expect from tower companies.

Analyst inference

The article reports shares had risen 15.0% this quarter and 7.2% this year, and the median price target of $209.50 sits about 10.1% above the $188.28 last close. Most analysts rate the stock buy.

Analyst inference

What to watch

1. Analysts expect earnings of $1.64 per share, with estimates ranging from $1.59 to $1.70, and the mean estimate rose about 0.8% over three months with no negative revisions in the last 30 days. Confirmed
2. Watch whether the company can keep growing revenue at a pace above analyst expectations, since beating sales forecasts is what offset flat earnings and may determine whether the recent share gain holds. Proposed
3. Watch interest costs tied to borrowed money, because tower companies carry significant debt, and higher financing costs would reduce the profit per sale available to shareholders even if revenue continues rising. Analyst inference

Evidence

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