Crown Castle International Corp. (REIT) (NYSE:CCI) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.
The company is expected to report earnings of $0.50/share on revenue of $1.505 billion. The consensus earnings per share (EPS) of $0.50/share is based on a poll of 9 analysts and represents a decline in eps of −14.4% over the same quarter last year, when the company reported earnings of $0.58/share.
The revenue forecast of $1.505 billion based on a poll of 13 analysts implies a year-over-year (YoY) decline in revenue of −0.6%. Last year the company reported $1.514 billion in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $1,504.68 | $1,514.00 | −0.6% |
| EPS | $0.50 | $0.58 | −14.4% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.
What are your expectations from Crown Castle International Corp. (REIT) for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | $0.50 | $0.41 | −17.4% | Missed |
| Q1, 2020 | $0.49 | $0.38 | −22.7% | Missed |
| Q4, 2019 | $0.46 | $0.43 | −6.6% | Missed |
| Q3, 2019 | $0.49 | $0.58 | 18.3% | Beat |
| Q2, 2019 | $0.41 | $0.52 | 26.8% | Beat |
| Q1, 2019 | $0.41 | $0.44 | 6.8% | Beat |
| Q4, 2018 | $0.43 | $0.44 | 1.8% | Beat |
| Q3, 2018 | $0.28 | $0.33 | 19.6% | Beat |
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 June 30, 2020, the stock price did not react much to the update.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| July 29, 2020 | $171.78 | $170.21 | −0.9% | Decline |
| April 29, 2020 | $161.26 | $159.43 | −1.1% | Decline |
| April 29, 2020 | $163.02 | $148.40 | −8.97% | Decline |
| April 29, 2020 | $134.65 | $139.58 | 3.36% | Increase |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.96, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.96 implies a 0.2% chance of earnings manipulation.
Fundamentals And Technical Analysis
Crown Castle International Corp. (REIT) is currently trading at $168.03/share, up 0.7% for the day. The company is trading at approximately 93.3% of its 52-week high of $180/share. The company’s stock price is down −1.3% since the last earnings report and down −0.1% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 54.58 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 97.40 and a forward P/E multiple of 80.19.
Crown Castle International Corp. (REIT)’s current share price also implies a price-to-book (P/B) multiple of 7.18. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $168.03 |
| P/E Ratio | 97.4x |
| P/E Ratio (Fwd) | 80.2x |
| PEG Ratio | 6.1 |
| Total Debt / Total Capital | 27.7% |
| Levered Free Cash Flow | $960 million |
| EV / EBITDA | 30.7x |
Crown Castle International Corp. (REIT) is a large-cap stock with a market capitalization of $70.043 billion and a total enterprise value of $94.564 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 approximately 80,000 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.
