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American Tower Raises Yearly Guidance as Q3 Results Surpass Expectations

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American Tower Raises Yearly Guidance as Q3 Results Surpass Expectations

Strong Financial Performance Reflects Resilience in Challenging Market

American Tower (NYSE: AMT), a leading telecommunications tower Real Estate Investment Trust (REIT), has raised its guidance for adjusted funds from operations (AFFO) for 2023, following stronger-than-expected Q3 financial results. The company’s global portfolio of communication assets has demonstrated remarkable resiliency in the face of an increasingly challenging macroeconomic environment.

CEO Tom Bartlett expressed confidence in a statement, highlighting the positive performance of the company’s diverse range of assets.

New Guidance Represents Continued Growth Potential

American Tower now expects AFFO per share of $9.72 to $9.85 for 2023, reflecting a 0.3% year-on-year growth at the midpoint. This is an improvement from the previous guidance range of $9.61 to $9.79. Analysts, on average, had estimated AFFO per share to be $9.75, indicating strong market confidence in the company.

In addition, American Tower has revised its full-year adjusted EBITDA guide to $7.01 billion to $7.09 billion, reflecting a 5.2% annual increase. The previous guidance range was $6.95 billion to $7.03 billion.

Impressive Q3 Results Beat Analyst Expectations

In Q3, American Tower reported AFFO per share of $2.58, surpassing the average analyst estimate of $2.51. This represents an increase from $2.46 in Q2 and $2.36 in the same quarter of the previous year.

Total operating revenues for Q3 amounted to $2.82 billion, exceeding the consensus estimate of $2.76 billion. This represents an increase from $2.77 billion in Q2 and $2.67 billion in the same period last year.

The company’s total operating expenses rose to $2.16 billion from $1.90 billion in the previous quarter and $2.02 billion in the same quarter of the previous year.

Adjusted EBITDA for Q3 came in at $1.81 billion, compared to $1.75 billion in Q2 and $1.64 billion in the same period of the previous year. The adjusted EBITDA margin improved to 64% from 63.1% in Q2 and 62% in Q3 2022.

American Tower has consistently outperformed market expectations, solidifying its position as a key player in the telecommunications sector. Earlier, the company beat Q3 top and bottom line estimates and raised its outlook for the full year 2023.

By consistently delivering impressive financial results and demonstrating resilience in a challenging market, American Tower has positioned itself as an attractive investment opportunity for those seeking exposure to the telecommunications industry.