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Crown Castle (CCI) Earnings Miss, Revenues Beat in Q3
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Crown Castle International Corp. (CCI - Free Report) reported mixed financial numbers in the third quarter of 2016, wherein the top line outpaced the Zacks Consensus Estimate while the bottom line fell short of the same.
This Zacks Rank #1 (Strong Buy) company competes with the likes of American Tower Corp. (AMT - Free Report) , SBA Communications Corp. (SBAC - Free Report) and Equinix Inc. (EQIX - Free Report) in the wireless tower operator industry.
The company reported quarterly earnings per share of $1.09, missing the Zacks Consensus Estimate of $1.13. However, GAAP net income fell 6% year over year to $98 million.
Net revenue in the quarter increased 8% year over year to $992 million, beating the Zacks Consensus Estimate of $970 million.
Gross margin in the reported quarter was 68.3% compared with 67.7% in the year-ago quarter. Quarterly adjusted EBITDA was approximately $564.1 million, representing a year-over-year increase of 6.6%
Cash Flow
During the third quarter of 2016, funds flow from operations (FFO) totaled $369.9 million compared with $357.8 million in the prior-year quarter. Quarterly adjusted funds flow from operations (AFFO) was $415.8 million compared with $356.4 million in the year-ago quarter.
Balance Sheet
At the end of Sep 2016, Crown Castle had cash and cash equivalents of approximately $156.2 million on its balance sheet compared with $178.8 million at the end of 2015. At third-quarter end, debt and other long-term obligations totaled approximately $14,520.3 million, up from roughly $13,992.4 million at the end of 2015.
Site Rental Segment
Quarterly revenues were $812 million, up 6% year over year. Gross margin at the segment was 69.4% compared with 68.7% in the prior-year quarter.
Network Services Segment
Quarterly revenues were $180 million, up 17.3% year over year. Gross margin was 40.2% compared with 44.3% in the prior-year quarter.
Fourth-Quarter 2016 Outlook
For the third quarter, Crown Castle expects Site Rental revenues in the range of $811 million to $816 million. Site Rental cost of operation is projected in the band of $253 million to $258 million. Adjusted EBITDA is anticipated between $566 million and $571 million. Site Rental gross margin is expected in the band of $566--$571 million. Interest expense (inclusive of amortization) is estimated in the range of $128–$133 million. Meanwhile, FFO is anticipated in the $383–$388 million band. AFFO is projected in the $403–$408 million range and net income is projected in the $90–$110 million band.
Full-Year 2016 Outlook
CrownCastlehas raised its outlook for 2016. The company now expects Site Rental revenues in the range of $3,227–$3,232 million. Site Rental cost of operation is projected in the $1015–$1,020 million band. Site Rental gross margin is expected between $2,210 million and $2,215 million. Adjusted EBITDA is anticipated between $2,219 million and $2,224 million. Interest expense (inclusive of amortization) is estimated in the $514–$519 million range. FFO is projected at the $1,426–$1,431 million band. AFFO is expected between $1,606 million and $1,611 million. Net income is anticipated between $318 million and $338 million.
Full-Year 2017 Outlook
CrownCastlehas also issued its outlook for 2017. The company expects Site Rental revenues in the range of $3,314–$3,334 million. Site Rental cost of operation is projected in the $1023–$1,053 million band. Site Rental gross margin is expected between $2,276 million and $2,306 million. Adjusted EBITDA is anticipated between $2,263 million and $2,293 million. Interest expense (inclusive of amortization) is estimated in the $515–$545 million range. FFO is projected at the $1,566–$1,596 million band. AFFO is expected between $1,739 million and $1,769 million. Net income is anticipated between $375 million and $425 million.
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Crown Castle (CCI) Earnings Miss, Revenues Beat in Q3
Crown Castle International Corp. (CCI - Free Report) reported mixed financial numbers in the third quarter of 2016, wherein the top line outpaced the Zacks Consensus Estimate while the bottom line fell short of the same.
This Zacks Rank #1 (Strong Buy) company competes with the likes of American Tower Corp. (AMT - Free Report) , SBA Communications Corp. (SBAC - Free Report) and Equinix Inc. (EQIX - Free Report) in the wireless tower operator industry.
The company reported quarterly earnings per share of $1.09, missing the Zacks Consensus Estimate of $1.13. However, GAAP net income fell 6% year over year to $98 million.
Net revenue in the quarter increased 8% year over year to $992 million, beating the Zacks Consensus Estimate of $970 million.
Gross margin in the reported quarter was 68.3% compared with 67.7% in the year-ago quarter. Quarterly adjusted EBITDA was approximately $564.1 million, representing a year-over-year increase of 6.6%
Cash Flow
During the third quarter of 2016, funds flow from operations (FFO) totaled $369.9 million compared with $357.8 million in the prior-year quarter. Quarterly adjusted funds flow from operations (AFFO) was $415.8 million compared with $356.4 million in the year-ago quarter.
Balance Sheet
At the end of Sep 2016, Crown Castle had cash and cash equivalents of approximately $156.2 million on its balance sheet compared with $178.8 million at the end of 2015. At third-quarter end, debt and other long-term obligations totaled approximately $14,520.3 million, up from roughly $13,992.4 million at the end of 2015.
Site Rental Segment
Quarterly revenues were $812 million, up 6% year over year. Gross margin at the segment was 69.4% compared with 68.7% in the prior-year quarter.
Network Services Segment
Quarterly revenues were $180 million, up 17.3% year over year. Gross margin was 40.2% compared with 44.3% in the prior-year quarter.
Fourth-Quarter 2016 Outlook
For the third quarter, Crown Castle expects Site Rental revenues in the range of $811 million to $816 million. Site Rental cost of operation is projected in the band of $253 million to $258 million. Adjusted EBITDA is anticipated between $566 million and $571 million. Site Rental gross margin is expected in the band of $566--$571 million. Interest expense (inclusive of amortization) is estimated in the range of $128–$133 million. Meanwhile, FFO is anticipated in the $383–$388 million band. AFFO is projected in the $403–$408 million range and net income is projected in the $90–$110 million band.
Full-Year 2016 Outlook
CrownCastlehas raised its outlook for 2016. The company now expects Site Rental revenues in the range of $3,227–$3,232 million. Site Rental cost of operation is projected in the $1015–$1,020 million band. Site Rental gross margin is expected between $2,210 million and $2,215 million. Adjusted EBITDA is anticipated between $2,219 million and $2,224 million. Interest expense (inclusive of amortization) is estimated in the $514–$519 million range. FFO is projected at the $1,426–$1,431 million band. AFFO is expected between $1,606 million and $1,611 million. Net income is anticipated between $318 million and $338 million.
Full-Year 2017 Outlook
CrownCastlehas also issued its outlook for 2017. The company expects Site Rental revenues in the range of $3,314–$3,334 million. Site Rental cost of operation is projected in the $1023–$1,053 million band. Site Rental gross margin is expected between $2,276 million and $2,306 million. Adjusted EBITDA is anticipated between $2,263 million and $2,293 million. Interest expense (inclusive of amortization) is estimated in the $515–$545 million range. FFO is projected at the $1,566–$1,596 million band. AFFO is expected between $1,739 million and $1,769 million. Net income is anticipated between $375 million and $425 million.
CROWN CASTLE Price, Consensus and EPS Surprise
CROWN CASTLE Price, Consensus and EPS Surprise | CROWN CASTLE Quote
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