| --- | --- | |--------------------------|--------------------------------------------------------------------------------| | | | | | | | July 17, 2024 | | | Second Quarter 2024 | | | Earnings Conference Call | | | | 1 Second Quarter 2024 Earnings Conference Call The pathway to possible. PAGE | This presentation contains forward-looking statements and information ("Forward-Looking Statements") that are based on our management's current expectations. Statements that are not historical facts are hereby identi ...

Crown Castle Inc. Second Quarter 2024 COMPANY OVERVIEW OUTLOOKCONSOLIDATED FINANCIALSCAPITALIZATION OVERVIEW TOWERS SEGMENT FIBER SEGMENT APPENDIX Reconciliation of Historical Adjusted EBITDA: | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------|-------|-------|-------|-------|-----------|-------|-------|-------|-------|-----------|-------| | (in millions; totals may not sum due to rounding) | | Q1 | | Q2 | 2023 | Q3 ...

| --- | --- | --- | --- | |-------------------------------------------------|-------------------------------------|------------------------|-------------------| | (dollars in millions, except per share amounts) | Current Full Year 2024 Outlook(a) | Full Year 2023 Actual | Change % Change | | Site rental revenues | $6,340 | $6,532 | $(192) (3)% | | Net income (loss) | $1,158 | $1,502 | $(344) (23)% | | Net income (loss) per share—diluted | $2.67 | $3.46 | $(0.79) (23)% | | Adjusted EBITDA(b) | $4,168 | $4,41 ...

Core Viewpoint - Crown Castle (CCI) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which is a significant factor influencing stock prices [1][4][9]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for Crown Castle, with the Zacks Consensus Estimate increasing by 0.4% over the past three months [6]. - The company is projected to earn $6.94 per share for the fiscal year ending December 2024, reflecting a year-over-year decline of 8.1% [12]. Zacks Rating System - The Zacks rating system maintains a balanced approach, with an equal proportion of 'buy' and 'sell' ratings across over 4000 stocks, ensuring that only the top 20% of stocks receive favorable ratings [7][11]. - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [11]. Market Implications - The upgrade to Zacks Rank 2 positions Crown Castle in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for stock price appreciation in the near term [14]. - The correlation between earnings estimate revisions and stock price movements is supported by empirical research, indicating that tracking these revisions can be beneficial for investment decisions [5][10].

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. Analysts predict that the 'Revenues- Site rental' ...

Group 1: Long-term Investment Principles - The principle of letting winners run is emphasized, with a focus on compounding and long-term stocks that have durable competitive advantages [1][2] Group 2: VeriSign (VRSN) - VeriSign plays a critical role in internet infrastructure, providing .com and .net domains under exclusive agreements with ICANN, ensuring its monopoly position [4] - The company has maintained high profitability with a 5-year average net margin of 54% and a 39% return on equity, reinforcing the strong economics of its domain registry business [5] - VRSN stock is currently trading at 22 times forward earnings, the cheapest in five years, indicating a strong investment opportunity [16] Group 3: Crown Castle (CCI) - Crown Castle operates in the cell tower sector and is considered undervalued with a forward price-to-funds-from-operations (P/FFO) of 14 and a dividend yield of 6.1% [7] - The cell tower business contributes 68% of revenues, providing stable income, and the growth in mobile data is expected to drive demand for cell towers [8] - The company has significant operating leverage due to long-term contracts with annual rent escalators of 3% [17] - Activist pressure from Elliott Management is expected to unlock shareholder value through strategic improvements [18] Group 4: Zoetis (ZTS) - Zoetis is a leader in the global animal health market, with approximately 20% of revenues from patented products, allowing it to charge premium prices [10] - The company has achieved an 8% annual revenue growth over the past 11 years, supported by the ongoing trend of pet humanization [11] - In Q4 2023, Zoetis reported an 8% year-over-year revenue growth, which accelerated to 10% in Q1 2024, driven by new product launches [20] - The company has maintained a 3-year diluted EPS CAGR of 11.8% and operating margins above 35% [22]

In a market where growth stocks continue to steal the spotlight and propel indices to new highs, it's easy to overlook industries that are perceived as sluggish. One such industry is telecom, with its constituents often finding themselves disregarded. Yet, this neglect has left numerous telecom stocks significantly undervalued. Thus, many names in the space now offer investors compelling opportunities. Given that telecom stocks are known for their stable, recession-resistant cash flows, they tend to make gr ...

After a period of aggressive interest rate hikes aimed at taming inflation, the Federal Reserve is poised to shift gears in the coming months. With inflation moderating and approaching the Fed's 2% target, economists and investors anticipate rate cuts as early as September 2024. Lower interest rates typically benefit certain sectors through lower borrowing costs and by spurring higher demand. However, there is also another way lower rate cuts can help companies this year. COVID forced many companies to take ...

alfexe/iStock via Getty Images Pick #1: CCI - Yield 6.5% CCI maintains a five-year dividend CAGR of 7.6%, and its most recent payment hike was by 6.5% in October 2022. The telecom infrastructure REIT maintains a strong balance sheet with investment-grade ratings from leading credit agencies. During Q1, CCI increased the percentage of its fixed-rate debt from 68% to 90% and extended its weighted average maturity term from five to seven years. The REIT also decreased the percentage of secured debt from 47% to ...

Core Viewpoint - The current interest rate environment, with yields on fixed-income investments around 5% or higher, presents income-seeking investors with various alternatives, including fixed government-backed securities and stocks. The high "risk-free" rate necessitates that stocks offer significantly higher yields to justify the associated risks [1][2]. Group 1: High-Yield Dividend Stocks - The article identifies three high-yield dividend stocks that not only offer yields of 6% or higher but also have growth potential for investors [3]. Group 2: Vale (VALE) - Vale is the largest producer of iron ore globally and has faced challenges due to political uncertainties in Brazil, which may impact its dividend payouts [5][6]. - Vale's dividend yield is currently at 15.7%, based on last year's dividends, reflecting its history of variable payouts influenced by the iron ore market's volatility [6]. - The company generated a free cash flow of $7.52 billion last year and is projected to generate $4.83 billion in free cash flow in FY2024, suggesting that its dividend yield may remain in double digits despite potential cuts [7]. Group 3: Enbridge (ENB) - Enbridge is a major player in the Canadian energy infrastructure sector, boasting a dividend yield of 7.7% and a history of increasing dividends for 29 consecutive years [9][10]. - The company's business model relies on long-term contracts, providing predictable cash flows, which has allowed it to remain profitable even during industry downturns [10][11]. - Enbridge is characterized as a reliable stock with consistent quarterly payouts and is currently trading at a forward EV/EBITDA of about 10.7, one of the lowest multiples in two decades [11]. Group 4: Crown Castle (CCI) - Crown Castle is a leading telecom infrastructure provider in the U.S., operating over 40,000 cell towers and approximately 85,000 miles of fiber [13][14]. - The company's dividend yield stands at 6.5%, which is attractive given its business model's strengths, including long-term contracts with major telecom companies [14][15]. - Crown Castle benefits from predictable cash flows due to its essential infrastructure role for telecom providers, making it a compelling high-yield investment opportunity [16].