American Tower Reports Positive EPS Amid Market Downturn

American Tower (AMT) shows resilience with a predicted EPS growth of 0.39% and revenue increase of 1.09% in its upcoming earnings report, contrasting with broader market losses.

Date: 07-09-2024

AI Rating: 6

American Tower (AMT) has displayed notable performance in the latest trading session, closing at $236.16 with a positive change of +1.08%, outperforming the S&P 500's loss of 1.73%.

Currently, a key focus for the investor community is the anticipated earnings report, where AMT is expected to report an Earnings Per Share (EPS) of $2.59, representing a slight growth of 0.39% year-over-year. Furthermore, the company is projected to achieve a revenue of $2.85 billion, which indicates a 1.09% increase from the previous year.

Over the fiscal year, the Zacks Consensus Estimates forecast an EPS of $10.52 and a total revenue of $11.21 billion, showing increases of +6.59% and +0.57%, respectively. This modest but positive growth in earnings and revenue can imply a stable financial outlook for investors, although it lags behind the performance of the Finance sector, which has reported a gain of 8.45% during the same period.

Moreover, the Zacks Rank system, which evaluates stocks based on estimated changes and trends, currently lists American Tower with a #3 (Hold) rating, following a recent 0.16% decrease in the EPS estimate. This implies that while expectations aren't exceptionally high, they remain steady.

In terms of valuation metrics, AMT's Forward P/E ratio stands at 22.21, significantly above its industry’s average Forward P/E of 12.54. Additionally, its PEG ratio of 1.5 is advantageous compared to the industry average of 2.38, suggesting that AMT might be undervalued relative to its earnings growth potential.

Despite the overall market's struggles, AMT's projections for earnings and revenue growth provide a glimmer of optimism for investors, particularly as they look ahead to the imminent earnings report.

Stocks: AMT