When American Tower Corporation (NYSE: AMT) releases its second-quarter 2022 results before the opening bell on Thursday, Zacks Equity Research said it is expecting year-over-year growth in revenues and funds from operations (FFO) per share. Last quarter, AMT posted a YoY increase in AFFO per share of 3.7 percent. Zacks said the quarterly results reflected an improvement in revenues across the Property and Service operations. AMT also beat FFO per share estimates over the last four quarters with the average overage at 2.79 percent.
Zacks cites advancements in 5G and the growth of bandwidth-intensive applications that have increased global usage of mobile data. In addition, Zacks said demand for video conferencing, next-gen technologies and cloud services have been driven by a flexible-working environment.
“The company’s unmatched geographically diversified portfolio of distributed sites has been attracting businesses from carriers seeking network expansion and densification amid the growing mobile data scenario,” the market analyst said. “Moreover, AMT is known to have a resilient and stable business model and generates most of its revenues from non-cancellable, long-term (typically 5-10 year) tower leases with major wireless carriers with multiple renewal period options.”
American Tower’s “highly interconnected data center facilities and critical cloud on-ramps” will add to the positive report due on Thursday, according to Zacks.
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