Valued at a market cap of $87.1 billion, Boston, Massachusetts-based American Tower Corporation (AMT) is a leading global real estate investment trust (REIT) and a prominent owner, operator, and developer of multitenant communications real estate. With a portfolio of over 148,000 communications sites and a robust network of data centers, it plays a critical role in advancing global connectivity. AMT is expected to release its fiscal Q4 earnings results before the market opens on Tuesday, Feb. 25.
Ahead of this event, analysts project the company to report an AFFO of $2.26 per share, reflecting a decrease of 1.3% from $2.29 per share in the year-ago quarter. However, the company holds a solid track record of consistently surpassing Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, AMT surpassed the consensus AFFO estimate by 7.8%.
For fiscal 2024, analysts forecast AMT to report an AFFO of $10.15 per share, up 2.8% from $9.87 per share in fiscal 2023.
American Tower has declined 5.9% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 25.6% gain and the Real Estate Select Sector SPDR Fund's (XLRE) 8.6% returns over the same time frame.
Despite American Tower's better-than-expected Q3 AFFO per share of $2.64, shares dipped 4.2% on Oct. 29 as the company reported total revenue of $2.5 billion, missing the consensus estimate. The company lowered its 2024 guidance, revising total property revenues down to $9.9 billion - around $10 billion and adjusted EBITDA to $6.8 billion - $6.9 billion. Also, AMT's revised AFFO per share guidance of $10.45 - $10.62, slightly below prior expectations. The lowered projections reflected challenges, such as slower-than-expected growth in international markets and the impact of divestitures, including the sale of assets in Australia and New Zealand.
Analysts' consensus view on AMT stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, 14 suggest a "Strong Buy," one gives a "Moderate Buy," and six recommend a "Hold." As of writing, AMT is trading below the average analyst price target of $228.83.
