HOUSTON-Crown Castle International Corp. put wireless communications tower stock traders in a frenzy this week when it offered up a concrete sign of hope for the sector by raising its earnings expectations for the full year.
Crown said it now expects site rental and broadcast transmission revenue for the year to range from $875 million to $885 million, up from previous expectations between $860 million and $870 million. The company expects earnings before interest, taxes, depreciation and amortization to be between $465 million and $475 million, up from $445 million to $470 million; and free cash flow to reach between $150 million and $160 million vs. its previous $145 million and $160 million. The company said its outlook reflects increased leasing activity by U.S. wireless carriers and a projected use of working capital of approximately $10 million for the full year.
Shares of Crown were trading up more than 5 percent at $14.36 per share following the news. The company is set to release its first-quarter earnings May 5.
Optimism has been brewing for the past six months in the tower industry, with beliefs that carrier capital expenditures would grow and tower builds would be up in 2004 as carriers concentrate on improving networks.
The news of Crown’s heightened expectations, which affirms that optimism, rippled through the three other national public tower companies, each of which plans to release its first-quarter earnings within the next few weeks.
Following the news, shares of American Tower Corp. were trading up 5 percent at $12.35, shares of SpectraSite Communications Inc. were slightly up at $38.57 and shares of SBA Communications Corp. were up more than 6 percent at $4.20.
