The firm said it lowered its rating on the company, which owns, operates, and leases shared wireless infrastructures, as it believes Crown Castle could take longer to see returns from acquisitions.
Must Read: Warren Buffett's 25 Favorite Stocks
"We rate CROWN CASTLE INTL CORP (CCI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
Separately, TheStreet Ratings team rates CROWN CASTLE INTL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
- The revenue growth came in higher than the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 23.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $401.39 million or 46.81% when compared to the same quarter last year. In addition, CROWN CASTLE INTL CORP has also vastly surpassed the industry average cash flow growth rate of -34.70%.
- CROWN CASTLE INTL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CROWN CASTLE INTL CORP reported lower earnings of $0.28 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.28).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 35.0% when compared to the same quarter one year ago, falling from $52.36 million to $34.01 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, CROWN CASTLE INTL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: CCI Ratings Report