Analysts were in a generally positive mood toward Crown Castle’s first quarter earnings last week, showing the growth that was projected by CCI. Robert Gutman, analyst with Guggenheim Partners, said numbers beat estimates across the board and “CCI put up a strong Q1 print, but the market reacted negatively, as organic growth guidance remained unchanged, and the company pointed to limited FirstNet contribution in 2018.”
“We believe the company remains well positioned,” he said “though a more pronounced impact on growth could be longer dated (i.e., 2019+). The company made steady progress on the macro side with an MLA announced for towers and small cells with T (making it the third MLA signed in the last two quarters). Notably, small cells on air and in backlog increased to 30K each, respectively (from 25K each in the prior quarter), and management retains a strong, long-term view of the business – which we believe could see traction in 2019/2020, with increasing densification efforts in urban areas of the country,” he said.
Anders Bylund, analyst with Motley Fool, waxed enthusiastically about the report saying, “Crown Castle is ready to pounce on the 5G wireless market. The wireless tower operator is already reporting a groundswell of 5G-related orders as its telecom customers get their next-generation ducks in a row. Business is booming ahead of the impending installation of 5G wireless networks.”
Colby Synesael, a Cowen analyst said, “CCI reported largely in-line results after excluding the non-cash benefit to revenue/EBITDA from the AT&T MLA. In addition, mgmt. maintained 2018 organic rev. and AFFO/share guidance. We expect the stock to trade sideways in the NT but we remain constructive as we still anticipate organic growth to further accelerate in 2019 and believe even in the face of a TMUS/S merger the stock can work.”
April 23, 2018
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