Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crown Castle increases guidance despite earnings, revenues miss

Published 04/21/2016, 07:42 PM
Updated 04/21/2016, 07:50 PM
Crown Castle, a top provider of mobile towers, missed quarterly earnings forecasts on Thursday

Crown Castle, a top provider of mobile towers, missed quarterly earnings forecasts on Thursday

Investing.com -- Crown Castle International (NYSE:CCI), a leading provider of mobile telephone towers and wireless broadband distribution systems, increased its forward guidance on Thursday afternoon, despite missing revenue and earnings' forecasts in the first quarter.

Crown Castle, which purchases cell phone tower portfolios before renting or leasing them to top carriers such as VZ Holding AG (SIX:VZN), AT&T Inc (NYSE:T) and T-Mobile US Inc. (NASDAQ:TMUS) among others, finished with revenues of $934.4 million during the first quarter of Fiscal Year 2016. It represented a spike of 3.8% on an annual basis, just short of estimates of $935 million.

As a result, the Houston-based company reported earnings of $47.8 million before dividends, down sharply from net profits of $122.8 million over the same period a year earlier. On a per-share basis, Crown Castle reported earnings of 0.11, far below profits of 0.30 in the first quarter of Fiscal Year 2015. Crown Castle projected per share earnings of 0.19.

In terms of site rental revenues, Crown Castle's sales increased by 9.3% to $799.3 million, slightly above the company's midpoint of $791 million.

"As a shared wireless infrastructure provider, Crown Castle is uniquely positioned with our portfolio of towers and small cells to help our customers deploy their wireless networks efficiently and cost-effectively as they seek to meet the increasing demand for wireless connectivity," said Ben Moreland, Crown Castle's President and Chief Executive Officer. "Our track record of consistently delivering results that meet or exceed our guidance, including the strong results we generated in the first quarter, further demonstrates the long-term demand for our wireless infrastructure."

In spite of the earnings miss, Crown Castle increased the midpoint for annual site rental revenue to $3.22 billion from previous guidance of $3.18 billion.

"The innovation and adoption of wireless connectivity is expected to drive new applications, such as machine-to-machine connections, mobile video and fixed wireless broadband, all of which give us confidence in our ability to deliver on our stated goal of generating compound annual growth in AFFO and dividends per share of 6% to 7% organically over the next several years," Moreland added. "We believe this growth, combined with our current dividend yield of approximately 4%, represents an attractive long-term total return profile for shareholders."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.