NYSE$AMT

American Tower Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

American Tower's financial performance remained solid in Q2 2020, with revenue and net income showing increases despite challenges from the COVID-19 pandemic.

American Tower Corporation reported a 1.2% increase in total revenue, reaching $1,913 million. Property revenue increased by 2.4% to $1,893 million, and net income rose by 3.2% to $448 million. The company focused on maintaining essential connectivity for tenants and strengthened its balance sheet.

  • Total revenue increased by 1.2% to $1,913 million.
  • Property revenue increased by 2.4% to $1,893 million.
  • Net income increased by 3.2% to $448 million.
  • The company repurchased approximately 51 thousand shares of its common stock for approximately $11 million.

Headline financials

Total Revenue

$1.91B

Previous: $1.89B+1.2%
EPS (adj)

$2.07

Previous: $2.01+3.0%
U.S. & Canada Organic Growth

4.7%

No prior period
Latin America Organic Growth

7.3%

No prior period
Africa & APAC Organic Growth

9.7%

No prior period
Europe Organic Growth

2.1%

No prior period
Capital Expenditures

$211M

No prior period
Free Cash Flow

$446M

Previous: $429M+4.0%
Net Income

$446M

Previous: $429M+4.0%
Operating Income

$691M

Previous: $684M+1.1%
Gross Profit

$1.38B

Previous: $1.88B-26.3%
Cash & Equivalents

$2.04B

Previous: $1.19B+71.0%
Total Assets

$41.5B

Previous: $39.1B+6.3%
Stock-Based Comp

$27.2M

Previous: $21.9M+24.2%

Revenue & EPS history

American Tower · Revenue · Quarterly

$1.91B

Q2 2020+1.2%vs Q2 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

American Tower · $1.91B total across 6 segments · Q2 2020

  • U.S. & Canada Property
    $1.09B
  • Latin America Property
    $294M
  • Data Centers
    $271M
  • Africa & APAC Property
    $206M
  • Europe Property
    $35M
  • Services
    $19.8M

Forward guidance

American Tower provided full year 2020 financial and operational estimates based on several assumptions, including foreign currency exchange rates. The company lowered the midpoint of its full year outlook for property revenue, net income, and Adjusted EBITDA, while raising the midpoint of its outlook for Consolidated AFFO.

Tailwinds

  • Estimated favorable impacts of foreign currency exchange rate fluctuations to property revenue
  • Estimated favorable impacts of foreign currency exchange rate fluctuations to Adjusted EBITDA
  • Estimated favorable impacts of foreign currency exchange rate fluctuations to Consolidated AFFO
  • U.S. growth rate includes an estimated positive impact of less than 1% associated with an increase in non-cash straight-line revenue recognition.
  • The company is raising the midpoint of its outlook for Consolidated AFFO by $20 million.

Headwinds

  • Lower straight-line revenue in the U.S.
  • Lower currency-neutral pass-through revenue in international markets.
  • Additional bad debt expense, primarily in India.
  • The Company is lowering the midpoint of its full year 2020 outlook for property revenue by $30 million.
  • The Company is lowering the midpoint of its full year 2020 outlook for net income by $50 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.9%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+6.2%

Q3 2023

Best reaction

-6.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+3.6%+5.3%
Q4 2025+0.7%+1.0%-11.1%
Q3 2025-3.7%-5.7%-4.5%
Q2 2025-4.2%-5.4%-9.7%
Q1 2025+4.7%+5.8%+1.1%
Q4 2024+6.1%+7.1%+11.5%
Q3 2024-3.9%-4.9%-5.8%
Q2 2024+2.5%+9.2%+4.0%
Q1 2024+1.1%+3.9%+9.0%
Q4 2023+3.2%+7.5%+5.3%
Q3 2023+6.2%+10.0%+23.1%
Q2 2023-0.5%+0.7%-6.6%
Q1 2023+1.9%-1.1%-9.7%
Q4 2022-1.8%-0.6%+0.2%
Q3 2022+4.0%+5.6%+11.8%
Q2 2022+4.9%+3.2%+1.1%
Q1 2022-1.0%-7.0%+2.4%
Q4 2021+2.7%+0.5%+5.8%
Q3 2021-1.2%-1.0%-7.9%
Q2 2021-0.8%-0.2%+0.2%
Q1 2021+1.1%-1.2%+1.4%
Q4 2020-3.8%-7.1%+6.2%
Q3 2020-0.2%+1.8%+1.7%
Q2 2020-3.6%-4.1%-8.0%
Q1 2020-2.3%-2.8%+6.0%
Q4 2019-1.0%-7.5%-9.3%
Q3 2019-0.8%-5.2%-1.5%
Q2 2019+1.3%+2.5%+10.3%
Q1 2019-0.3%-0.6%+8.3%
Q4 2018+1.2%+3.3%+13.2%
Q3 2018+2.0%-0.5%+6.5%
Q2 2018+5.2%+5.8%+4.4%
Q1 2018+0.1%+1.8%+1.5%
Q4 2017-2.4%-6.1%+1.8%
Q3 2017-1.4%-0.5%+0.7%
Q2 2017+0.3%-1.4%+4.6%
Q1 2017+2.5%+4.2%+6.8%
Q4 2016+1.7%+2.5%+7.2%
Q3 2016+0.4%-0.4%-7.2%
Q2 2016-1.6%-0.7%-3.7%
Q1 2016+1.3%
Q4 2015+3.1%
Q3 2015+1.3%
Q2 2015-1.8%
Q1 2015-0.0%
Q4 2014-1.9%
Q3 2014+2.6%
Q2 2014+2.2%
Q1 2014+4.2%
Q4 2013-2.6%
Q3 2013-1.2%
Q2 2013-1.9%
Q1 2013-0.2%
Q4 2012+5.1%
Q3 2012+1.6%
Q2 2012-0.2%
Q1 2012+0.8%
Q4 2011+1.2%
Q3 2011+0.9%
Q2 2011-6.9%
Q1 2011+1.1%
Q4 2007-1.9%
Q4 2010-1.9%
Q3 2010-0.1%
Q2 2010-0.4%
Q1 2009-4.9%
Q1 2010-0.2%
Q4 2009+0.3%
Q3 2008+1.1%
Q3 2009+1.1%
Q2 2008-3.7%
Q4 2008-3.7%
Q2 2009-3.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro