What's Next: Crown Castle's Earnings Preview

Crown Castle CCI is gearing up to announce its quarterly earnings on Wednesday, 2024-10-16. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Crown Castle will report an earnings per share (EPS) of $1.80.

Crown Castle bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

The company's EPS missed by $0.03 in the last quarter, leading to a 0.56% drop in the share price on the following day.

Here's a look at Crown Castle's past performance and the resulting price change:

Stock Performance

Shares of Crown Castle were trading at $112.03 as of October 14. Over the last 52-week period, shares are up 26.03%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Crown Castle

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Crown Castle.

Analysts have provided Crown Castle with 9 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $114.33, suggesting a potential 2.05% upside.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of Digital Realty Trust, Extra Space Storage and VICI Props, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Digital Realty Trust received a Neutral consensus from analysts, with an average 1-year price target of $151.86, implying a potential 35.55% upside.
• Extra Space Storage received a Neutral consensus from analysts, with an average 1-year price target of $173.46, implying a potential 54.83% upside.
• For VICI Props, analysts project an Outperform trajectory, with an average 1-year price target of $36.33, indicating a potential 67.57% downside.

Peer Metrics Summary

The peer analysis summary offers a detailed examination of key metrics for Digital Realty Trust, Extra Space Storage and VICI Props, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Crown Castle ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity.

Unveiling the Story Behind Crown Castle

Crown Castle International owns and leases roughly 40,000 cell towers in the United States. It also owns more than 90,000 route miles of fiber. It leases space on its towers to wireless service providers, which install equipment on the towers to support their wireless networks. The company's fiber is primarily leased by wireless service providers to set up small-cell network infrastructure and by enterprises for their internal connection needs. Crown Castle's towers and fiber are predominantly located in the largest us cities. The company has a very concentrated customer base, with about 75% of its revenue coming from the big three us mobile carriers. Crown Castle operates as a real estate investment trust.

Crown Castle's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Decline in Revenue: Over the 3 months period, Crown Castle faced challenges, resulting in a decline of approximately -12.91% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.

Net Margin: Crown Castle's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 15.44%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Crown Castle's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.29%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Crown Castle's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.66%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Crown Castle's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.2, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Crown Castle visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.