DJ Tower Stocks Up -2: Capital Spending Concerns Ease ˜
17 Apr 15:58
By Kaja Whitehouse
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Tower stocks reached for the sky Tuesday, riding the
wings of American Tower Corp.'s (AMT) optimistic first-quarter earnings
outlook.
The Boston company added hope to the sector when it said early Tuesday it
expects to either meet or exceed previously provided revenue and cash flow
expectations.
The news eased concerned investors who have been fearful that the group's
first-quarter earnings would suffer if the weakening economy cut spending on
the buildout of wireless networks.
"The sense is that the slowdown (in capital spending) isn't as dramatic" as
some had predicted, said Richard Prentiss, analyst at Raymond James.
Citing strong customer activity, American Tower said in a press release early
Tuesday that it sees first-quarter revenue and cash flow for the tower rental
and services segment of its business to meet or even exceed its earlier
expectations.
Earlier this quarter, the company had estimated first-quarter revenue for the
tower rental segment of $87 million and $90 million, with cash flow of $46
million to $50 million. It estimated first-quarter service segment revenue of
$85 million to $98 million, with cash flow of $7 million to $10 million.
A Thomson Financial/First Call survey of 14 analysts sees the company posting
a loss of 39 cents for the quarter.
American Tower shares recently gained $3, or 14.8%, to $23.31, on volume of
more than 2.2 million, above average daily volume of 1.6 million.
Other tower stocks up on the news included SpectraSite Holdings Inc. (SITE)
up $1.11, or 26.5%, to $5.36, and SBA Communications, up $1.65, or 8.4%, to
$21.30.
Crown Castle International Corp. (TWRS) rose 75 cents, or 3.9%, to $19.75,
while Pinnacle Holdings Inc. (BIGT) rose less, about one penny, or 0.1%, to
$8.20.
(MORE) DOW JONES NEWS 04-17-01
03:58 PM |
