March 21, 2017 —
American Tower updated its outlook today, filing a Form 8-K with the Securities and Exchange Commission.
After giving its full year 2017 outlook on February 27, 2017, the tower company amended a master lease agreement with one of its tenants and now expects at least $100 million in additional straight-line revenue for the year. It now expects total property revenue, net income and Adjusted EBITDA in the range of $6,310 million to $6,490 million, $1,275 million to $1,345 million and $3,910 million to $4,010 million, respectively. The tower company also plans to purchase an additional $1.1 billion of its common stock.
Jennifer Fritzsche, senior analyst, Wells Fargo, saw the increased outlook as a sign that wireless infrastructure deployment is increasing and is consistent with her firm’s recent upgrade for towers.
“We suspect this is U.S.-based activity and our guess is it likely involves one of the largest two carriers (AT&T or Verizon). If we were to speculate, our belief is this could be more related to Verizon activity given it had a holistic MLA with AMT in the past,” she wrote. AT&T is expected to increase spending on the towers once it receives confirmation on FirstNet contract.