Crown Castle Inc. Prepares for Q3 2024 Results: What to Expect
Crown Castle Inc. (CCI) will release its third-quarter 2024 earnings on October 16, after market close. Investors and analysts are keenly anticipating this update to gauge the company’s performance amid current economic challenges.
Stay informed on all quarterly releases: See Zacks Earnings Calendar.
In the previous quarter, the Houston, TX-based real estate investment trust (REIT) reported adjusted funds from operations (FFO) per share that were 1.8% below the Zacks Consensus Estimate. This decline was primarily driven by a fall in net revenues year over year, alongside heightened interest expenses and lower adjusted EBITDA contributions.
Over the last four quarters, Crown Castle’s FFO per share exceeded estimates twice but fell short in the other two instances, averaging a miss of 0.03%. This trend is illustrated in the graph below:
Crown Castle Inc. Price and EPS Surprise
Crown Castle Inc. price-eps-surprise | Crown Castle Inc. Quote
Let’s examine the current situation before this upcoming announcement.
Key Factors Influencing Performance
Crown Castle boasts a leading portfolio of wireless communication infrastructure assets across the United States. With wireless data usage expected to surge in the coming years, service providers will likely continue investing in network expansion and densification to accommodate this demand.
The company’s robust financial position is anticipated to support its deployment of small cell technology, which is critical for enhancing the capacity and density of 5G networks.
However, a decrease in tower activity compared to the earlier phases of the 5G investment cycle may adversely affect performance in the soon-to-be-reported quarter.
Our current estimate for site rental revenues stands at $1.58 billion, indicating a slight year-over-year increase. Conversely, we predict a significant 41.4% decline in revenues from the network services and other segments to about $52.8 million.
The Zacks Consensus Estimate for total revenues in the third quarter is set at $1.64 billion, reflecting a 1.9% decrease from the previous year.
Additionally, elevated interest expenses are likely to impact CCI’s financial results, with anticipated costs rising by 8.5% year over year.
Given these factors, Crown Castle’s recent activities have not significantly enhanced analysts’ confidence in its performance. The Zacks Consensus Estimate for FFO per share has remained steady at $1.80 over the past month, signaling a 1.69% increase from the same quarter last year.
Quantitative Insights
Our model does not provide strong evidence for an FFO surprise for Crown Castle this quarter. A positive Earnings ESP alongside a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) can indicate a better chance of an FFO beat, which is not applicable here.
Currently, Crown Castle has an Earnings ESP of -0.91% and holds a Zacks Rank of 2.
Other Stocks to Consider
Investors might also look into three other stocks from the broader REIT sector: SL Green Realty (SLG), Highwoods Properties (HIW), and Cousins Properties (CUZ). These companies currently exhibit the necessary elements to potentially report a surprise this quarter.
SL Green is set to announce its quarterly results on October 16, boasting an Earnings ESP of +2.38% and a Zacks Rank of 2. You can view the complete list of today’s Zacks #1 Rank stocks here.
Highwoods Properties is scheduled to report on October 22, with an Earnings ESP of +0.47% and a Zacks Rank of 3 at present.
Cousins Properties is expected to share its results on October 24, with an Earnings ESP of +1.12% and also a Zacks Rank of 3.
Note: All earnings data mentioned in this article reflect funds from operations (FFO), a commonly used measure to assess REIT performance.
Top Stock Picks for 30 Days
Exciting news: Financial experts have highlighted 7 elite stocks from an extensive list of 220 Zacks Rank #1 Strong Buys, labeling them as “Most Likely for Early Price Pops.”
Historically since 1988, this comprehensive list has outperformed the market more than twice, with an average gain of +23.7% annually. These 7 stocks deserve your immediate consideration.
Interested in the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to access this free report.
Highwoods Properties, Inc. (HIW): Free Stock Analysis Report
Crown Castle Inc. (CCI): Free Stock Analysis Report
Cousins Properties Incorporated (CUZ): Free Stock Analysis Report
SL Green Realty Corporation (SLG): Free Stock Analysis Report
For the full article, visit Zacks.com.
Zacks Investment Research
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
