American Tower (AMT) Down 8.3% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for American Tower (AMT). Shares have lost about 8.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is American Tower due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.American Tower's Q4 AFFO & Revenues Beat Estimates, Rise Y/YAmerican Tower reported its fourth-quarter 2025 adjusted funds from operations (AFFO), attributable to American Tower common stockholders, per share of $2.63, beating the Zacks Consensus Estimate of $2.54. This compared favorably with the prior year’s reported figure of $2.32.Results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. The company recorded healthy year-over-year organic tenant billings growth of 5.9% and total tenant billings growth of 6.5%.The company’s total revenues were $2.74 billion, outpacing the Zacks Consensus Estimate of $2.68 billion. The figure increased 7.5% from the prior-year quarter.According to Steven Vondran, CEO of American Tower, “Leasing demand across our global tower portfolio and data center business remains robust, underpinned by sustained growth in mobile data consumption, continued 5G deployment, and increasing hybrid-cloud and AI-related workloads.”Quarter in DetailAdjusted EBITDA was $1.82 billion, up 7.5% from the prior-year period. The adjusted EBITDA margin was 66.4%.Property OperationsRevenues were $2.67 billion, up by 7.6% on a year-over-year basis. Total operating profit was $1.86 billion, and the operating profit margin was 70%.In the Property segment, revenues from the United States and Canada totaled $1.33 billion, up 1.6% year over year. Total international revenues amounted to $1.07 billion, up 13.1% year over year. Data Centers added $281 million to Property revenues, up 19% from the prior-year period.Service OperationsRevenues totaled $64.4 million in the quarter, rising 1.1% from the prior-year quarter. The operating profit was $19 million, and the operating profit margin was 29% in the October-December quarter.Cash Flow & LiquidityIn the fourth quarter, American Tower generated $1.43 billion of cash from operating activities, down 2.2% from the prior quarter. Free cash flow in the period was $836 million, falling 15% from the prior quarter.As of Dec. 31, 2025, the company had $11.1 billion in total liquidity. This comprised $1.5 billion in cash and cash equivalents and the availability of $9.6 billion under its revolving credit facilities (net of any outstanding letters of credit).During the fourth quarter, American Tower repurchased an aggregate of 2 million shares of its common stock for a total value of around $365 million, including commissions and fees.2026 GuidanceAmerican Tower anticipates total property revenues to be in the band of $10.44-$10.59 billion, indicating a year-over-year improvement of 2% at the midpoint.Adjusted EBITDA is projected in the band of $7.09-$7.16 billion. This calls for a marginal year-over-year decline at the midpoint.AFFO, attributable to American Tower common stockholders, is expected to be in the band of $5.04-$5.12 billion, implying marginal year-over-year growth at the midpoint.The expected range for AFFO, attributable to American Tower common stockholders, per share is $10.78-$10.95, indicating a 1% upside at the midpoint.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.VGM ScoresAt this time, American Tower has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook American Tower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Tower Corporation (AMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks