Crown Castle International Q4 Earnings: Can CCI Hit Its $0.46 EPS Target?

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Crown Castle International Corp. (REIT) (NYSE:CCI) is scheduled to report Q4 earnings results on Wednesday, February 26, 2020, after the market closes. Management has scheduled a conference call to review earnings for Thursday, February 27, 2020, at 10:30 a.m. ET.

The company is expected to report earnings of $0.46/share on revenue of $1.491 billion. The consensus earnings per share (EPS) of $0.46/share is based on a poll of 8 analysts and represents a growth of 5.0% over the same quarter last year when the company reported earnings of $0.44/share.

The revenue forecast of $1.491 billion based on a poll of 11 analysts implies a year-over-year (YoY) growth of 5.1%. Last year the company reported $1.419 billion in revenue for the quarter.

Expected to report EPS growth of $0.02/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $1,491.06 $1,419.00 5.1%
EPS $0.46 $0.44 5.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from Crown Castle International for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.49 $0.58 18.4% Beat
Q2, 2019 $0.42 $0.52 23.8% Beat
Q1, 2019 $0.42 $0.44 5.1% Beat
Q4, 2018 $0.44 $0.44 0.7% Beat
Q3, 2018 $0.28 $0.33 19.3% Beat
Q2, 2018 $0.30 $0.36 18.0% Beat
Q1, 2018 $0.25 $0.21 -16.0% Missed
Q4, 2017 $0.28 $0.17 -38.7% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 3.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-16 $134.65 $139.58 3.7% Increase
2019-07-17 $132.72 $126.87 -4.4% Decline
2019-04-17 $124.61 $122.62 -1.6% Decline
2019-01-23 $109.19 $111.91 2.5% Increase

Fundamentals And Technical Analysis

Crown Castle International is currently trading at $146.69/share, up 1.0% for the day. The company is trading at approximately 98.1% of its 52-week high of $149.47/share. The company’s stock price is up 5.1% since the last earnings report and up 3.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 68.42 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:CCI Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 64.1x and a forward P/E multiple of 72.1x. The current share price also implies a price-to-book (P/B) multiple of 5.3x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $146.69
P/E Ratio 64.1x
P/E Ratio (Fwd) 72.1x
PEG Ratio 3.0
Total Debt to Capital (%) 28.1%
Levered Free Cash Flow $580 million
Enterprise Value / EBITDA 26.3x

Source: Finbox

Company Profile: Crown Castle International Corp. (REIT)

Crown Castle International Corp. (REIT) is a large-cap stock with a market capitalization of $60.39 billion and a total enterprise value of $83.834 billion. The company operates in the Real Estate sector and the Equity Real Estate Investment Trusts (REITs) industry.

Crown Castle owns, operates and leases more than 40,000 cell towers and more than 75,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service – bringing information, ideas, and innovations to the people and businesses that need them.

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