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

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.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.Over 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:American Tower Corporation Price and EPS Surprise American Tower Corporation price-eps-surprise | American Tower Corporation QuoteFactors at Play and Q2 Projections for AMTWith 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.The 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.The 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.The 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.What Our Quantitative Model Predicts for AMTOur 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Other Stocks That Warrant a LookHere 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.AvalonBay 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.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.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 American Tower Corporation (AMT): Free Stock Analysis Report AvalonBay Communities, Inc. (AVB): Free Stock Analysis Report Cousins Properties Incorporated (CUZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks