With a market cap of $41.4 billion, Crown Castle Inc. (CCI) is a leading provider of shared communications infrastructure based in Houston, Texas. The wireless tower operator is expected to announce its fiscal Q2 earnings results on Wednesday, July 17.
Ahead of the event, analysts expect CCI to report a profit of $1.56 per share, down 23.9% from $2.05 per share in the year-ago quarter. The company has consistently surpassed Wall Street's bottom-line estimates in the last four quarterly reports. Robust site rental revenue, driven by increased demand for wireless infrastructure, helped the company exceed the consensus EPS estimate by 5.5% in the most recent quarter.
For fiscal 2024, analysts expect Crown Castle to report EPS of $6.62, down 12.3% from $7.55 in fiscal 2023.
CCI has significantly underperformed the broader markets over the past 52 weeks, with shares down 16.5% during this period versus the S&P 500 Index's ($SPX) 23.8% gain and the S&P 500 Real Estate Sector SPDR's (XLRE) marginal returns over the same time frame.
On Jan. 25, Crown Castle's stock climbed following better-than-expected Q4 earnings, driven by strong site rental revenue growth and exceeding adjusted funds from operations (AFFO) estimates. Despite a decline in overall revenue, the company's expansion in small cell infrastructure and positive outlook for 2024 also bolstered investor confidence. Moreover, the stock soared 1.4% after its better-than-expected Q1 earnings results on Apr. 17, driven by the rapid deployment of 5G technology.
Analysts' consensus view on Crown Castle stock is cautiously optimistic, with a "Moderate Buy" rating. Among 17 analysts covering the stock, four recommend a "Strong Buy," one has a "Moderate Buy" rating, and 12 give a "Hold" rating. This configuration is slightly less bullish than three months ago, with five analysts suggesting a "Strong Buy."
The average analyst price target for CCI is $110.75, suggesting a potential upside of 14.2% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
