American Tower (AMT) Set for Earnings Report with EPS Growth

American Tower (AMT) is closely monitored ahead of its earnings report. EPS is projected to grow slightly, and revenue is also expected to increase. The company's current Forward P/E suggests a premium valuation compared to its industry.

Date: 07-09-2024

AI Rating: 6

American Tower (AMT) is gearing up for its upcoming earnings report, which is likely to impact its stock performance significantly.

The company is expected to deliver an EPS of $2.59, reflecting a 0.39% growth compared to the same quarter last year. This slight increase in earnings per share may signal to investors a mildly positive trajectory, although growth is fairly modest.

Revenue is forecasted to reach $2.85 billion, indicating a 1.09% increase year-over-year. This aligns with a general trend of increasing revenue, although the growth is not particularly remarkable.

Moreover, for the overall fiscal year, analysts expect earnings of $10.52 per share with a projected revenue of $11.21 billion. These projections show 6.59% growth in EPS and a 0.57% increase in revenue compared to the previous year. Given these expectations, the company appears stable but not exceptionally strong in growth metrics.

Analysts have adjusted their estimates slightly downwards, with a 0.16% decrease in the Zacks Consensus EPS estimate over the last month, which suggests a more cautious outlook for AMT.

Currently, American Tower holds a Zacks Rank of #3 (Hold), reflecting a neutral stance among analysts on the stock's near-term performance.

The company's Forward P/E ratio of 22.21 is significantly above the average industry Forward P/E of 12.54, which indicates a premium valuation that investors may or may not find justified based on future growth.

Additionally, AMT's PEG ratio is 1.5, compared to the average of 2.38 in its industry. This suggests that AMT may not be overvalued relative to its growth expectations, but investors should be wary of the elevated pricing.

Overall, while some metrics indicate a degree of growth, the outlook remains cautiously optimistic due to lower-than-expected revisions and high valuations.

Stocks: AMT