NEW YORK ( TheStreet) -- Crown Castle International (NYSE: CCI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
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- The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 17.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CROWN CASTLE INTL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CROWN CASTLE INTL CORP turned its bottom line around by earning $0.52 versus -$1.16 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.52).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 275.8% when compared to the same quarter one year prior, rising from $30.87 million to $116.01 million.
- The gross profit margin for CROWN CASTLE INTL CORP is currently very high, coming in at 70.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.80% is above that of the industry average.
- Net operating cash flow has slightly increased to $162.13 million or 3.73% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.88%.
-- Written by a member of TheStreet Ratings Staff