American Tower Corporation AMT is scheduled to release second-quarter 2025 results on July 29, before the opening bell. The company’s quarterly results are expected to reflect a year-over-year decline in revenues and adjusted funds from operations (AFFO) per share.\n\nIn the last quarter, American Tower reported an AFFO attributable to AMT common stockholders per share of $2.75, which beat the consensus mark of $2.60. The quarterly results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment.\n\nOver the preceding four quarters, the company’s AFFO per share estimates topped on three occasions and missed in the remaining period, the average beat being 4.9%. The graph below depicts this surprise history:\n\nAmerican Tower Corporation Price and EPS Surprise\n\nAmerican Tower Corporation price-eps-surprise | American Tower Corporation Quote\n\nFactors at Play and Q2 Projections for AMT\n\nWith wireless carriers increasing capital expenditure due to rising wireless penetration, accelerated 5G network deployment efforts and spectrum auctions, demand is likely to stay strong. This positive trend is likely to have driven the demand for AMT’s extensive and geographically diverse communication real estate portfolio, favorably impacting its quarterly performance.\n\nThe REIT is also anticipated to have continued with its macro-tower investments during the quarter, backed by a solid balance sheet position.\n\nThe consensus estimate for operating revenues from the Services segment is pegged at $74.9 million, which indicates a significant rise from $47 million reported in the prior-year quarter.\n\nMoreover, AMT’s data center business is likely to have benefited from growth in cloud computing, the Internet of Things, big data and the elevated demand for third-party IT infrastructure.\n\nThe Zacks Consensus Estimate for operating revenues from the Data Centers segment is currently pegged at $257.7 million, indicating an uptick from $231 million in the year-ago period.\n\nHowever, the elevated churn in AMT’s U.S. & Canada property segments might have been a spoilsport. Also, high interest costs are likely to have affected its performance to some extent during the quarter.\n\nThe consensus estimate for operating revenues from the Total Property segment is pegged at $2.50 billion, which implies a decline from $2.85 billion reported in the year-ago period.\n\nThe Zacks Consensus Estimate for quarterly revenues is pegged at $2.58 billion, which indicates a drop of 11% from the year-ago period’s reported figure.\n\nAmerican Tower’s activities during the soon-to-be-reported quarter have been inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has remained unchanged at $2.59 in the past three months. However, the figure implies a decrease of 7.2% from the year-ago quarter’s reported figure.\n\nWhat Our Quantitative Model Predicts for AMT\n\nOur proven model predicts a likely surprise in terms of AFFO per share for American Tower this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is exactly the case here.\n\nAmerican Tower has an Earnings ESP of +1.08% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.\n\nWhat Our Quantitative Model Predicts for AMT\n\nHere are two stocks from the broader REIT sector — AvalonBay Communities AVB and Cousins Properties CUZ— that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.\n\nAvalonBay Communities, scheduled to report quarterly numbers on July 30, has an Earnings ESP of +0.02% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.\n\nCousins Properties, slated to release quarterly numbers on July 31, has an Earnings ESP of +0.36% and carries a Zacks Rank of 3 at present.\n\nNote: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.\n\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAmerican Tower Corporation (AMT) : Free Stock Analysis Report\nAvalonBay Communities, Inc. (AVB) : Free Stock Analysis Report\nCousins Properties Incorporated (CUZ) : Free Stock Analysis Report\nThis article originally published on Zacks Investment Research (zacks.com).\nZacks Investment Research

American Tower to Report Q2 Earnings: What to Expect From the Stock?

American Tower Corporation (AMT) is scheduled to release second-quarter 2025 earnings results on July 29, with expectations of a year-over-year decline in revenues and adjusted funds from operations (AFFO) per share. The company’s Q1 2025 AFFO per share of $2.75 exceeded the consensus estimate, driven by revenue growth in property and service segments. However, factors like elevated churn in U.S. & Canada property segments and high interest costs may impact performance. Analysts note a 11% drop in total quarterly revenues compared to the prior-year period. The article also highlights similar earnings surprises for AvalonBay Communities (AVB) and Cousins Properties (CUZ).