Valued at a market cap of $103 billion, American Tower Corporation (AMT) is a leading independent owner, operator and developer of multitenant communications real estate. The Boston, Massachusetts-based company also offers customized colocation solutions through in-building systems, outdoor distributed antenna systems (DAS), managed rooftops, and other right-of-way assets. It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Tuesday, Jul. 29.
Ahead of this event, analysts expect this multitenant communications REIT to report an FFO of $2.50 per share, down 10.4% from $2.79 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s FFO estimates in each of the last four quarters. In Q1, AMT’s FFO per share of $2.75 outpaced the forecasted figure by 10.4%.
For fiscal 2025, analysts expect AMT to report FFO of $10.17 per share, down 3.5% from $10.54 per share in fiscal 2024. Nonetheless, its FFO per share is expected to grow 6.7% year-over-year to $10.85 in fiscal 2026.
American Tower has soared 12.5% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 11.7% return and the Real Estate Select Sector SPDR Fund’s (XLRE) 7.9% uptick over the same time frame.
On Apr. 29, shares of AMT surged 4.8% after its Q1 earnings release. The company’s overall operating revenue grew 2% year-over-year to $2.6 billion, primarily due to a robust surge in its services revenue, marking its highest level since 2021. This growth was driven by accelerating, broad-based mid-band deployments in the U.S. and early indications of capacity-driven new site demand. Moreover, its AFFO per share of $2.75 improved 6.6% from the year-ago quarter and topped the consensus estimates by 10.4%. Favourable leasing and pricing momentum at its data center platform, CoreSite, steady activity in its international markets, and a continued focus on global cost management further supported its results.
Wall Street analysts are highly optimistic about AMT’s stock, with a "Strong Buy" rating overall. Among 23 analysts covering the stock, 17 recommend "Strong Buy," two indicate "Moderate Buy," and four suggest "Hold.” The mean price target for AMT is $246.71, which indicates an 11.8% potential upside from the current levels.
