A month has gone by since the last earnings report for Crown Castle (CCI). Shares have lost about 9.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Crown Castle due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Crown Castle Inc. before we dive into how investors and analysts have reacted as of late.
Crown Castle's Q2 AFFO Surpasses Estimates, Revenues Fall Y/Y
Crown Castle reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $1.02, which beat the Zacks Consensus Estimate of $1.00. However, the figure declined nearly 1% year over year.
Results reflected a rise in services and other revenues year over year. However, a decline in site rental revenues affected the results to some extent. The company increased its outlook for 2025.
Net revenues of $1.06 billion outpaced the Zacks Consensus Estimate of $1.04 billion but fell 4.2% year over year.
Key Earnings Takeaways
During the second quarter, Crown Castle’s total site rental revenues declined 5.3% year over year to $1 billion. This fall was due to a $16 million decrease in amortization of prepaid rent and a $34 million decrease in straight-lined revenues. Our estimate for total site-rental revenues was pegged at $983.5 million.
The organic contribution to site rental billings of $45 million reflected 4.7% year-over-year organic growth, excluding the $51 million impact from Sprint Cancellations.
On the other hand, services and other revenues came in at $52 million, which rose 20.9% from the prior-year quarter. Our estimate for services and other revenues was pegged at $51.5 million.
The quarterly adjusted EBITDA was down 3% year over year to $705 million.
Net interest expense and amortization of deferred financing costs rose 5.7% year over year to $243 million. Our estimate for the same was $247.3 million.
Financial Position
Crown Castle exited the second quarter with cash and cash equivalents of $94 million, up from $60 million reported as of March 31, 2025.
Moreover, debt and other long-term obligations aggregated $22.04 billion as of June 30, 2025, decreasing 3.7% sequentially.
2025 Guidance
Crown Castle raised its guidance for 2025 AFFO per share in the range of $4.14-$4.25 from the prior guided range of $4.06-$4.17.
The company increased the site rental revenue range to $3.997-$4.042 billion from the previous range of $3.987-$4.032 billion. Adjusted EBITDA is estimated in the band of $2.780-$2.830 billion, up from the prior range of $2.755-$2.805 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Crown Castle has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Crown Castle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Crown Castle Inc. (CCI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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