American Tower, a leading global real estate investment trust (REIT) focused on the telecommunications industry, reported its first quarter earnings on April 26th, 2023. Despite reporting revenue of $2.77B, which beat the consensus estimate of $2.74B, the company missed the analyst estimate for earnings per share (EPS) by $0.37, with a Q1 EPS of $0.72.
Stock price drops in response to Q1 earnings miss
Following the earnings report, American Tower’s stock price dropped, closing at $201.74. The stock has been in a downward trend for the past 12 months, with a decline of 20.21%. In the last 3 months, the stock has decreased by 8.63%. The negative reaction to the Q1 earnings miss may be contributing to the decline in stock price.
EPS revisions show negative trend for American Tower
Over the last 90 days, American Tower has seen 0 positive EPS revisions and 4 negative EPS revisions. This negative trend in EPS revisions may have contributed to the Q1 earnings miss.
Conclusion
In conclusion, American Tower’s Q1 earnings report was mixed. While the company reported higher than expected revenue, it fell short of the analyst estimate for EPS. This miss may have contributed to the decline in the stock price over the past 12 months. Additionally, the negative trend in EPS revisions over the past 90 days may be cause for concern for investors.
