American Tower Corporation (REIT) (NYSE:AMT) is scheduled to report Q3 earnings results on October 29, 2020.
The company is expected to report earnings of $1.09/share on revenue of $1.971 billion. The consensus earnings per share (EPS) of $1.09/share is based on a poll of 5 analysts and represents a decline in eps of −2.6% over the same quarter last year, when the company reported earnings of $1.12/share.
The revenue forecast of $1.971 billion based on a poll of 14 analysts implies a year-over-year (YoY) growth in revenue of 0.9%. Last year the company reported $1.954 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
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 American Tower Corporation (REIT) for earnings this quarter? Let us know in the comments!
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 reacted by falling −3.6%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 30, 2020||$271.29||$261.39||−3.6%||Decline|
|April 29, 2020||$243.53||$238||−2.3%||Decline|
|February 25, 2020||$245.11||$242.67||−1.0%||Decline|
|October 31, 2019||$217.24||$215.52||−0.8%||Decline|
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 −2.56, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.56 implies a 0.5% chance of earnings manipulation.
Fundamentals And Technical Analysis
American Tower Corporation (REIT) is currently trading at $237.12/share, down −0.3% for the day. The company is trading at approximately 87.1% of its 52-week high of $272.20/share. The company’s stock price is down −9.3% since the last earnings report and down −2.7% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 41.75 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 54.71 and a forward P/E multiple of 55.13.
American Tower Corporation (REIT)’s current share price also implies a price-to-book (P/B) multiple of 29.05. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$237.12|
|P/E Ratio (Fwd)||55.1x|
|Total Debt / Total Capital||23.0%|
|Levered Free Cash Flow||$3.72 billion|
|EV / EBITDA||28.2x|
American Tower Corporation (REIT) is a large-cap stock with a market capitalization of $105.2 billion and a total enterprise value of $135.9 billion. The company operates in the Real Estate sector and the Equity Real Estate Investment Trusts (REITs) industry.
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 181,000 communications sites.