NYSE$CCI

Crown Castle International · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported second quarter results and maintained outlook for full year 2024.

Crown Castle's second quarter results demonstrated the durability and consistency of its business. The company remains on track to deliver its full year outlook for organic revenue growth of 4.5% in towers, 2% in fiber solutions, and double digits in small cells, adjusted for the impact of Sprint Cancellations. In the Fiber segment, Crown Castle announced and implemented changes in the second quarter to improve the investment outcomes on capital being spent on small cell anchor builds and fiber solutions opportunities. The company reduced its staffing levels and field office locations, which is expected to result in approximately $100 million of annualized run-rate operating cost savings.

  • Organic Contribution to Site Rental Billings was $63 million, or 4.7% growth from second quarter 2023, excluding an unfavorable $106 million impact from Sprint Cancellations.
  • Net income for the second quarter 2024 was $251 million, including $45 million of charges incurred in the quarter related to the restructuring plan announced in June 2024.
  • Second quarter 2024 Adjusted EBITDA was $1.0 billion, primarily a result of the lower contribution from site rental revenues, $22 million of lower services contribution, and $20 million of advisory fees primarily related to the recent proxy contest.
  • Second quarter 2024 AFFO was $704 million, or $1.62 per share, primarily a result of the lower contribution from Adjusted EBITDA and higher interest expense compared to second quarter 2023.

Headline financials

Total Revenue

$1.63B

Previous: $1.87B-12.9%
EPS

$0.58

Previous: $2.05-71.7%
Adjusted EBITDA

$727M

No prior period
Capital Expenditures

$40M

No prior period
Free Cash Flow

$251M

Previous: $455M-44.8%
Net Income

$251M

Previous: $455M-44.8%
Operating Income

$485M

Previous: $667M-27.3%
Gross Profit

$1.6B

Previous: $1.77B-9.6%
Cash & Equivalents

$155M

Previous: $276M-43.8%
Total Assets

$38.2B

Previous: $39B-2.0%
Stock-Based Comp

$40M

Previous: $50M-20.0%

Revenue & EPS history

Crown Castle · Revenue · Quarterly

$1.63B

Q2 2024-12.9%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Crown Castle · $1.16B total across 2 segments · Q3 2023

  • Site Rental
    $1.07B-0.9%
  • Services & Other
    $90M-49.4%

Forward guidance

Crown Castle maintained its full year 2024 Outlook as issued on July 17, 2024.

Tailwinds

  • Full year consolidated site rental billings growth, excluding the impact of Sprint Cancellations, is expected to be 5%, inclusive of 4.5% from towers, 15% from small cells, and 2% from fiber solutions.
  • Core leasing activity for full year 2024 is expected to contribute $305 million to $335 million, consisting of $105 million to $115 million from towers, $65 million to $75 million from small cells, and $135 million to $145 million from fiber solutions.
  • The expected 2024 small cell core leasing activity of $70 million at the midpoint includes $25 million of higher-than-expected non-recurring revenues primarily related to early termination payments.
  • Excluding the impact of Sprint Cancellations and the increase in non-recurring revenues, small cell organic growth is expected to be 10% in 2024.
  • The expected increase in full year 2024 expenses includes $25 million of advisory fees related to the recent proxy contest, which is expected to be more than offset by an approximately $60 million decrease in costs related to the reduction in staffing levels and office closures announced in June 2024.

Headwinds

  • Interest expense for full year 2024 is expected to be $78 million to $123 million higher than in full year 2023, primarily related to incremental debt financing to fund discretionary capital expenditures in 2024.
  • Site rental revenues as a percentage of prior year site rental revenues is expected to be (3.0)%.
  • Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings is expected to be 1.6%.
  • AFFO per share is expected to be between $6.91 to $7.02.
  • Net income (loss) per share—diluted is expected to be between $2.59 to $2.74.

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 2024

Historical avgQ2 2024

-0.3%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.1%

Avg return

30 days after

54%

38 / 70 earnings

Positive

+8.5%

Q4 2024

Best reaction

-9.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%+0.2%+6.3%
Q4 2025-9.0%-1.8%+5.0%
Q3 2025+0.6%-3.2%-7.9%
Q2 2025+0.6%+1.8%-5.6%
Q1 2025+0.5%+0.6%-5.1%
Q4 2024+8.5%+9.7%+1.7%
Q3 2024-2.2%-3.6%-9.2%
Q2 2024+1.1%+0.0%+5.7%
Q1 2024+0.4%+1.2%+9.5%
Q4 2023+2.6%+0.9%+0.7%
Q3 2023-8.0%-7.3%+11.3%
Q2 2023-2.8%+0.8%-9.3%
Q1 2023-4.1%-6.0%-14.6%
Q4 2022+1.9%-0.4%-9.7%
Q3 2022-4.9%-8.2%+1.8%
Q2 2022-0.3%-1.2%+3.8%
Q1 2022+1.3%-0.5%-6.0%
Q4 2021-5.8%+0.2%-8.0%
Q3 2021+2.9%+2.8%+6.3%
Q2 2021-5.5%-5.4%-2.6%
Q1 2021+0.7%+1.7%+1.4%
Q4 2020-3.3%+0.5%-4.7%
Q3 2020-5.0%-2.8%+1.5%
Q2 2020-0.9%-4.5%-4.7%
Q1 2020-1.1%-2.2%+6.8%
Q4 2019-9.0%-4.2%-16.0%
Q3 2019+3.7%+6.5%+0.0%
Q2 2019-4.4%-4.7%+7.7%
Q1 2019-1.6%-1.6%+2.1%
Q4 2018+2.5%+4.8%+9.8%
Q3 2018-0.3%-1.0%+4.9%
Q2 2018+0.1%-1.9%+2.7%
Q1 2018-3.3%-1.1%-3.7%
Q4 2017-1.6%-0.5%+0.1%
Q3 2017+1.8%+2.5%+8.5%
Q2 2017+0.7%+2.6%+7.7%
Q1 2017-1.3%-1.0%+5.9%
Q4 2016+0.4%-1.0%+5.6%
Q3 2016+3.5%+2.4%-7.3%
Q2 2016+0.4%-1.8%-5.2%
Q1 2016+0.2%
Q4 2015+1.4%
Q3 2015+4.4%
Q2 2015+3.1%
Q1 2015+1.0%
Q4 2014+4.0%
Q3 2014-5.3%
Q2 2014-2.3%
Q1 2014-1.6%
Q4 2013-1.6%
Q3 2013-1.4%
Q2 2013-4.1%
Q1 2013+4.6%
Q4 2012-0.6%
Q3 2012+1.3%
Q2 2012+4.8%
Q1 2012+2.3%
Q4 2011+0.2%
Q3 2011+2.7%
Q2 2011-5.1%
Q1 2011+2.2%
Q4 2010-3.1%
Q3 2010-1.8%
Q2 2010+0.2%
Q1 2009+2.8%
Q1 2010+0.2%
Q4 2009+2.9%
Q2 2009+2.9%
Q3 2009+6.4%
Q2 2008-3.9%

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