DOW JONES NEWSWIRES
American Tower Corp.'s (AMT) second-quarter earnings slumped 65%
on a prior-year tax benefit as demand remained strong for the
cell-tower operator's antennas. But earnings fell short of
analysts' expectations.
Cell-tower operators have benefited from volume increases, which
have prompted wireless carriers to spend more on upgrades.
The company - which has communications sites in the U.S.,
Mexico, Brazil and India - reported a profit of $56.3 million, or
14 cents a share, down from $158.8 million, or 38 cents a share, a
year earlier. Earnings from continuing operations rose to 13 cents
a share from 12 cents.
Revenue increased 7.5% to $423.4 million.
Analysts polled by Thomson Reuters expected per-share earnings
of 16 cents on revenue of $414 million.
In May, Moody's Investors Service raised its view on the
company, saying American Tower's strong operating results and
significant debt reduction the past couple of years bode well for a
possible ratings increase to investment-grade.
And JPMorgan late last month boosted its stock-investment rating
on the company to overweight, saying strong data trends, smartphone
penetration and growth among unlimited carriers could lead to
increased leasing demand for tower operations the rest of this year
and into 2010.
Shares of American Tower, which reiterated its 2009 forecast,
closed Tuesday at $33.53 and were inactive in premarket trading
Wednesday.
-By Shara Tibken and Kevin Kingsbury, Dow Jones Newswires;
212-416-2189; shara.tibken@dowjones.com;