American Tower Lifts Outlook on Wireless Data Growth, AES Raises Estimate

Mukesh Buch
27 Feb, 2017
New York City

American Tower lifted revenue outlook. AES net loss widened but estimated average annual growth between 8% and 10%. Gogo surged after net loss narrowed and communication services provider lifted revenues forecast. Sotheby

[R]3:10 PM New York – American Tower lifted revenue outlook. AES net loss widened but estimated average annual growth between 8% and 10%. Gogo surged after net loss narrowed and communication services provider lifted revenues forecast. Sotheby’s net swung to profit. Tegna net tumbled.[/R]

Tollbooth Index slipped 21.88 or 0.2% to 11,715.98.

Earnings Review

American Tower Corp ((AMT)) rose 22 cents to $113.11 after the communication real estate developer reported total revenues in the fourth-quarter ending in December surged 20.3% from a year ago at $1.5 billion.

Net income in the quarter fell 1.7% to $202.4 million or 47 cents per diluted share compared to $205.9 million or 48 cents per share in the same quarter last year.

American Tower forecasted revenues in the fiscal 2017 to jump 10.3% or between $6.2 billion and $6.4 billion and net income to soar 24.7% or in the range of $1.18 billion to $1.25 billion.

The communication tower developer said income tax provisions of $60.8 million in the quarter hurt the profit compared to the $25.9 million in a year ago period.

The AES Corporation ((AES)) declined 4.4% or 53 cents to $11.40 after the electricity services provider said revenues in the fourth-quarter ending in December soared 9.9% from a year ago to $3.5 billion.

Net loss in the quarter widened to $949 million or $1.44 per diluted share compared to $85 million or 13 cents per share in the same quarter last year.

Gogo Inc ((GOGO)) surged 16.5% or $1.50 to $10.62 after the wireless communication services provider said revenues in the fourth-quarter ending in December jumped 16% from a year ago to $160 million.

Net loss in the quarter narrowed to $26.9 million or 34 cents per diluted share compared to $33.9 million or 43 cents per share in the same quarter last year.

Gogo estimated revenues in the fiscal 2017 between $670 million and $695 million, growth of 12% to 17% from fiscal 2016.

Halyard Health Inc ((HYH)) slumped 2.8% or $1.14 to $40.30 after the healthcare services provider stated revenues in the fourth-quarter ending in December rose 2% from a year ago to $410 million.

Net income in the quarter tumbled 33.3% to $10 million or 21 cents per diluted share compared to $15 million or 31 cents per share in the same quarter last year.

Sotheby’s ((BID)) soared 11% or $4.41 to $44.50 after the auction services provider reported total revenues in the fourth-quarter ending in December plunged 8.1% from a year ago at $308.7 million.

Net in the quarter swung to profit of $65.5 million or $1.20 per diluted share compared to a loss of $11.2 million or 17 cents per share in the same quarter last year.

Tegna Inc ((TGNA)) jumped 4.3% or $1.06 to $25.86 after the broadcasting services provider said total revenues in the fourth-quarter ending in December soared 10.2% from a year ago to $887.4 million.

Net income in the quarter tumbled 14.6% to $133.1 million or 61 cents per diluted share compared to $155.9 million or 69 cents per share in the same quarter last year.

Tegna said revenues in the quarter improved mainly due to media and digital revenues increased 14.5% and 17.3% respectively and higher retransmission revenues and political spending.