Crown Castle International Corp. CCI is set to release fourth quarter of 2021 and full -year results on Jan. 26, after the closing bell. While CCI’s quarterly results are likely to reflect revenue growth, its funds from operations (FFO) per share may have experienced a decline.
In the last reported quarter, this Houston -based real estate investment trust (REIT) adjusted funds from operations (AFFO) per share exceeded the Zacks Consensus Estimate by 2.9%. Growth in site rental revenues contributed to top performance.
In the past four quarters, Crown Castle’s FFO per share has exceeded estimates on each occasion, averaging 13.3%. This is illustrated in the graph below:
Crown Castle International Corporation Price and EPS Surprise
Price-eps-surprise of Crown Castle International Corporation | Quote by Crown Castle International Corporation
Let’s take a look at how things developed before this announcement.
Factors to Remember
In the fourth quarter, tower REITs are likely to increase from increased mobile data usage, spectrum availability and high network investment by wireless carriers to deploy 5G networks. With these, Crown Castle is poised to grow in its ability to offer a holistic network solution with towers, fiber and small cells.
As the data volume of wireless and wired networks grows rapidly, network carriers continue to spend more on network deployments to utilize spectrum capabilities as well as enhance and enlarge their cells. site and scope.
A strong and trusted tenant base adds stability to the Crown Castle business. CCI has long-term (typically 5-15 years) tower lease agreements with leading U.S. carriers and is expected to contribute to recurring site rentals by the end of the December quarter. The consensus estimate for net revenues from site rentals pegged at $ 1.45 billion for the fourth quarter, suggesting 7.5% growth from last year’s reported quarter count.
A rise in tower activity, supported by other growth drivers, is likely to drive Crown Castle network services revenues in the fourth quarter.
The consensus estimate for net revenues from network services and other segments is pinned at $ 166 million for the quarter under review, suggesting a 17.7% jump from last year’s reported quarterly figure.
The Zacks Consensus Estimate for fourth-quarter revenues pegged at $ 1.63 billion, suggesting an 8.9% increase from the quarter’s reported number of years ago.
However, prior to the release of fourth -quarter earnings, analysts seemed pessimistic about CCI’s prospects because the Zacks Consensus Estimate for quarterly FFO per share has changed slightly down to $ 1.71 over the past 60 days. Moreover, it calls for a 26.6% decrease from the reported number of the previous quarter year.
For the full year, the Zacks Consensus Estimate for FFO per share has not changed at $ 6.89 over the past two months. The figure indicates an 8.1% increase from the previous year’s reported number in revenues of $ 6.31 billion.
Here is what our quantitative model predicts:
Our proven model doesn’t necessarily predict an FFO beat for Crown Castle this time around. The right combination of the two main ingredients – a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — increases the likelihood of an FFO beat.
You can discover the best stocks to buy or sell before they are reported using our ESP Revenue Filter.
Earned ESP: Crown Castle has an ESP Revenue of 0.00%.
Zacks Rank: Crown Castle currently has Zacks Rank #2 (Buy). You see the complete list of Zacks #1 Rank (Strong Buy) stocks is now here.
Stocks in Need of View
Here are some stocks like Boston Properties BXP, EastGroup Properties EGP at Highwoods Properties HIW should be considered from the REIT sector, as our model shows that they have the right combination of elements to deliver a surprise in this reporting cycle:
Boston Properties, which is set to release fourth -quarter earnings on Jan. 25, has an ESP of Revenue of +0.37% and Zacks Rank of 3 at present.
EastGroup Properties, which is scheduled to report a quarterly figure on Feb. 8, has an ESP Revenue of +0.32% and Zacks Rank of 2, at present.
Highwoods Properties, which is set to release fourth -quarter earnings on Feb. 8, has an ESP of Revenue of +2.67% and Zacks Rank of 3 at present.
Stay up to date with upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to revenues presented in this write-up represents funds from operations (FFO)-a widely used metric to measure the performance of REITs.
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Highwoods Properties, Inc. (HIW): Free Stock Analysis Report
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