Two days ago, Zacks Equity Research analysts predicted that American Tower Corp. would likely beat Wall Street estimates with a strong Q2 2021 performance.
It turns out that Zacks was absolutely correct in its assessment, with its quarterly funds from operations, or “FFO,” easily beating Zacks’ calculations.
The per-share FFO for American Tower in Q2 came in at $2.42, up from $2.07 in Q2 2020.
Zacks’ forecast was for FFO in Q2 ’21 of $2.34.
Over the last four quarters, American Tower Corp. has surpassed consensus FFO estimates three times, and in Q1 delivered a 6% “surprise,” Zacks notes.
Meanwhile, American Tower saw its revenue come in at $2.298 billion for Q2, surpassing the Zacks Consensus Estimate by 4.57%. It rose from $1.913 billion in Q2 2020.
Operating income grew to $849.2 million, from $691.3 million as net income grew to $747.9 million ($1.65 per diluted share) from $448.4 million ($1.01) in Q2 2020.
“In Q2, secular growth trends in mobile continued to support meaningful carrier capital investment and wireless network technology advancements throughout our footprint,” American Tower CEO Tom Bartlett said. “In addition to delivering double-digit growth in [adjusted funds from operations] per share and 15% dividend growth, we added nearly 27,000 sites through our Telxius Towers acquisition in the quarter, augmenting American Tower’s position as a leading independent provider of communications real estate in Europe.”
Looking forward, Bartlett expects American Tower to leverage the competitive advantage provided by its “scaled, diversified portfolio of more than 214,000 communications sites to drive sustainable long-term growth and attractive returns, capitalize on new opportunities associated with 5G and execute our vision of making wireless communication possible everywhere.”
Total tenant billings growth stood at 10.7% in Q2 2021.
Property gross margin growth was at 18.1% in the last quarter.