It has been about a month since the last earnings report for Crown Castle International Corporation CCI. Shares have added about 6.9% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Crown Castle Beats on Earnings and Revenues in Q1

Crown Castle reported first-quarter 2017 earnings per share of $1.24, beating the Zacks Consensus Estimate of $1.16. Likewise, GAAP net income rose a whopping 149% year over year to $119.1 million.

Revenues

Total revenue in the quarter increased 8.7% year over year to $1,015.9 million, beating the Zacks Consensus Estimate of $1,009 million. Site Rental Segment quarterly revenues were $856.9 million, up 7.2% year over year. Network Services Segment quarterly revenues were $159 million, up 17.7% year over year.

Operating Metrics

Quarterly operating income came in at $256.5 million compared with $211.7 in the year-ago quarter. Total operating expenses rose to $759.4 million from $722.6 million in the year-ago quarter. Operating margin in the reported quarter was 25.3% compared with 22.7% in the year-ago quarter. Quarterly adjusted EBITDA was approximately $581 million, representing a year-over-year increase of 7.8%.

Cash Flow

During the first quarter of 2017, funds flow from operations (FFO) totaled $400.9 million compared with 316.3 million in the prior-year quarter. Quarterly adjusted funds flow from operations (AFFO) was $450.2 million compared with $395.2 million in the year-ago quarter.

Balance Sheet

At the end of the first quarter of 2017, Crown Castle had cash and cash equivalents of approximately $205.2 million on its balance sheet compared with $567.6 million at the end of 2016. At first-quarter 2017 end, debt and other long-term obligations totaled approximately $13,493 million, up from $12,069.4 million at the end of 2016.

Second-Quarter 2017 Outlook

For the second quarter of 2017, Crown Castle expects Site Rental revenues in the range of $866 million to $871 million. Site Rental cost of operation is projected in the band of $275 million to $280 million. Adjusted EBITDA is anticipated between $584 million and $589 million. Site Rental gross margin is expected in the band of $589–$594 million. Interest expense (inclusive of amortization) is estimated at $137–$142 million. Meanwhile, FFO is anticipated in the $394–$399 million band. AFFO is projected in the $433–$438 million range and net income is projected at $90–$110 million.

Full-Year 2017 Outlook

Crown Castle has raised its outlook for 2017. The company expects Site Rental revenues in the range of $3,473–$3,503 million. Site Rental cost of operation is projected in the $1,071–$1,101 million band. Site Rental gross margin is expected between $2,387 million and $2,417 million. Adjusted EBITDA is anticipated between $2,372 million and $2,402 million. Interest expense (inclusive of amortization) is estimated in the $542–$572 million range. FFO is projected at $1,623 –$1,653 million. AFFO is expected between $1,805 million and $1,835 million. Net income is anticipated between $427 million and $477 million.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed a downward trend in fresh estimates. There has been five downward revisions for the current quarter compared to one upward.

Crown Castle International Corporation Price and Consensus

Crown Castle International Corporation Price and Consensus | Crown Castle International Corporation Quote

VGM Scores

At this time, Crown Castle's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Following the exact same course, the stock was allocated also a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.

The stock is suitable solely for growth, based on our styles scores.

Outlook

Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.

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