Why American Tower Stock Rose Today
Shares of American Tower (NYSE: AMT) looked down on Wall Street from a lofty position on Tuesday. The owner and operator of wireless networking and broadcast infrastructure posted stellar fourth-quarter results in the early morning. The stock soared as much as 7.5% higher in the morning session, settling down to a 6.2% gain by 1:15 p.m. ET.
American Tower's fourth-quarter revenue rose 3.7% year over year to $2.55 million. The analyst community's average estimate stopped at $2.51 billion. On the bottom line, unadjusted earnings soared from $0.18 to $2.62 per diluted share. Here, your average analyst would have settled for $1.75.
Earnings enjoyed a strong boost from robust cost controls. American Tower's operating expenses came in 20% below the year-ago period's figure, driven by dramatically lower depreciation, amortization, and accretion costs. The company didn't sell a ton of assets but recalculated its amortization schedules in early 2024, based on a longer useful life for its towers.
Source Fool.com
