American Tower Corporation (AMT) is scheduled to release second-quarter 2025 results on July 29. The company’s quarterly results are expected to reflect a year-over-year decline in revenues and adjusted funds from operations (AFFO) per share. In 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%. With 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. The 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. Moreover, 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. However, 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. The 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. American 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\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. American Tower has an Earnings ESP of +1.08% and currently carries a Zacks Rank of 2. Here 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. Cousins 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. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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

American Tower Corporation (AMT) is set to release Q2 2025 earnings on July 29, with expectations of a year-over-year revenue decline and adjusted funds from operations (AFFO) per share decline. The company’s AFFO per share for Q1 2025 exceeded consensus estimates, driven by growth in property and service segments. However, factors like U.S. & Canada property churn and high interest costs may impact results. Analysts note AMT’s strong balance sheet and macro-tower investments, while related stocks like AvalonBay Communities and Cousins Properties are also expected to report positive surprises.