American Tower Stock Gains on Q4 AFFO Beat, Revenues Rise Y/Y

American Tower Corporation’s AMT shares have gained nearly 7% in today’s trading session in response to stellar fourth-quarter results.Its fourth-quarter 2024 adjusted funds from operations (AFFO), attributable to AMT common stockholders per share, of $2.32 beat the Zacks Consensus Estimate of $2.31 and climbed 1.3% year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.Results reflect a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment. American Tower recorded healthy year-over-year organic tenant billings growth of 5% and total tenant billings growth of 5.7%.The company’s total revenues were $2.55 billion, outpacing the Zacks Consensus Estimate of $2.50 billion. The figure increased 3.7% from the prior-year quarter.Per Steven Vondran, CEO of American Tower, “We posted another year of solid results at American Tower, delivering AFFO per share growth supportive of our long-term target, while demonstrating effective execution of the strategic priorities I laid out a year ago. Our initial expectations for accelerating activity over the course of the year were validated, highlighted by mid-band deployments in the United States and Europe, 4G densification and early 5G upgrades in emerging markets, and another exceptional year of leasing at CoreSite.”In 2024, the company’s AFFO of $10.54 per share increased 6.8% from a year ago and met the consensus estimate of $10.54. Total revenues grew 1.1% to $10.13 billion and outpaced the consensus mark of $10.08 billion.AMT’s Q4 in DetailAdjusted EBITDA was $1.69 billion, up 5.1% from the prior-year period. The adjusted EBITDA margin was 66.4%.The company sold 100% of its ownership interests in its subsidiaries in Australia and New Zealand for a total aggregate consideration of approximately $77.6 million.It entered into an agreement to sell one of its subsidiaries in South Africa that holds fiber assets for a total aggregate consideration of 2.5 billion South African Rand (approximately $132.7 million) subject to certain adjustments. The company expects to complete the sale in the first quarter of 2025.Property Operations of AMTRevenues were $2.48 billion, up 2% on a year-over-year basis. Total operating profit was $1.73 billion and the operating profit margin was 70%.In the Property segment, revenues from the United States and Canada totaled $1.30 billion, up marginally year over year. Total international revenues amounted to $944 million, increasing 2.7%. Data Centers added $236 million to Property revenues, up 9.8% from the prior-year period.AMT’s Service OperationsRevenues totaled $63.7 million in the quarter, rising significantly from $21 million in the prior-year quarter. The operating profit was $26 million and the operating profit margin was 40% in the October-December quarter.Cash Flow & Liquidity of AMTIn the fourth quarter, American Tower generated $1.2 billion of cash from operating activities, rising 5% year over year. Free cash flow in the period was $746 million, jumping 22.2% from a year ago.As of Dec. 31, 2024, the company had $12 billion in total liquidity. This comprised $2 billion in cash and cash equivalents and the availability of $10 billion under its revolving credit facilities (net of any outstanding letters of credit).AMT’s 2025 GuidanceAmerican Tower anticipates total property revenues to be in the band of $9,920 -$10,070 million, indicating a year-over-year improvement of 0.6% at the midpoint.The adjusted EBITDA is projected in the band of $6,855-$6,925 million. This indicates a year-over-year increase of 1.1% at the midpoint.The AFFO attributable to AMT common stockholders is expected to be in the band of $4,830-$4,920 million, implying a 1.3% year-over-year decline at the midpoint.The expected range for AFFO, attributable to AMT common stockholders per share, is $10.31-$10.50, indicating a fall of 1.3% at the midpoint. The Zacks Consensus Estimate for the metric is pegged at $10.40, which is within the company’s guided range.AMT currently carries a Zacks Rank #4 (Sell). American Tower Corporation Price, Consensus and EPS Surprise American Tower Corporation price-consensus-eps-surprise-chart | American Tower Corporation Quote Performance of Other REITsHost Hotels & Resorts, Inc. HST reported fourth-quarter AFFO per share of 44 cents, which surpassed the Zacks Consensus Estimate of 40 cents. The figure remained unchanged from the prior-year quarter.Results reflected higher revenues, driven by year-over-year comparable hotel total RevPAR growth. The company issued its outlook for 2025 adjusted AFFO per share. Presently, HST carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Healthpeak Properties, Inc. DOC reported fourth-quarter 2024 FFO as adjusted per share of 46 cents, which beat the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. DOC currently carries a Zacks Rank of 3.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Report Host Hotels & Resorts, Inc. (HST): Free Stock Analysis Report Healthpeak Properties, Inc. (DOC): 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