American Tower to Report Q3 Earnings: What to Expect From the Stock?

American Tower Corporation AMT is scheduled to release third-quarter 2025 results on Oct. 28, before the opening bell. The company’s quarterly results are expected to reflect a year-over-year growth in revenues, with a marginal dip in adjusted funds from operations (AFFO) per share.

In the last quarter, American Tower reported an AFFO attributable to AMT common stockholders per share of $2.60, which met the consensus mark. The quarterly results reflected a year-over-year rise in revenues, aided by revenue growth across its property and service operations segment.

Over the preceding four quarters, the company’s AFFO per share estimates topped on two occasions, met once and missed in the remaining period, the average beat being 2.32%. The graph below depicts this surprise history:

American Tower Corporation Price and EPS Surprise

American Tower Corporation price-eps-surprise | American Tower Corporation Quote

Factors at Play and Q3 Projections for AMT

American Tower owns an extensive, geographically diversified communication real estate portfolio. With wireless carriers increasing capital expenditure due to rising wireless penetration, accelerated 5G network deployment efforts and spectrum auctions, demand is likely to stay strong. This positive trend is likely to have favorably impacted the quarterly performance for AMT, driving its top-line growth.

The REIT is also anticipated to have continued with its macro-tower investments during the quarter, backed by a solid balance sheet position.

The Zacks Consensus Estimate for operating revenues from the Total Property segment is pegged at $2.59 billion, which implies an uptick of 5.1% from the figure reported in the year-ago period.

The consensus estimate for operating revenues from the Services segment is pegged at $58.2 million, which indicates 11.9% growth over the prior-year quarter figure.

Moreover, AMT’s data center business is likely to have benefited from growth in cloud computing, the Internet of Things, big data and the elevated demand for third-party IT infrastructure.

The consensus estimate for operating revenues from the Data Centers segment is currently pegged at $268 million, indicating an uptick from $234 million in the year-ago period.

The Zacks Consensus Estimate for quarterly revenues stands at $2.65 billion, which implies growth of 5.2% from the year-ago period’s reported figure.

However, the elevated churn in AMT’s U.S. & Canada property segments might have been a spoilsport, negatively impacting its performance to some extent during the quarter.

American Tower’s activities during the soon-to-be-reported quarter have been inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has remained unchanged at $2.62 in the past three months. Moreover, the figure implies a marginal decrease from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts for AMT

Our proven model does not conclusively predict a likely surprise in terms of AFFO per share for American Tower this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here.

American Tower has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — Ventas VTR and Extra Space Storage EXR — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

Ventas, scheduled to report quarterly numbers on Oct. 29, has an Earnings ESP of +0.84% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Extra Space Storage, slated to release quarterly numbers on Oct. 29, has an Earnings ESP of +0.23% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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