Core Viewpoint - The article discusses the importance of understanding market dynamics and the potential implications for investment strategies in the current economic environment [1]. Group 1: Market Dynamics - The current economic landscape is characterized by volatility, which presents both challenges and opportunities for investors [1]. - Analysts emphasize the need for a thorough analysis of macroeconomic indicators to make informed investment decisions [1]. Group 2: Investment Strategies - Companies are encouraged to adopt flexible investment strategies that can adapt to changing market conditions [1]. - The article highlights the significance of diversifying investment portfolios to mitigate risks associated with market fluctuations [1].

Core Insights - Seeking Alpha welcomes Lester Clark as a new contributing analyst, encouraging others to share investment ideas for publication and potential earnings [1] Group 1 - The article highlights the background of an amateur investor with extensive business experience, now focusing on analyzing undervalued companies [2] - The investor emphasizes a detail-oriented approach to uncovering inconsistencies in company narratives and setting realistic expectations [2] - Preference is given to companies with active operations and straightforward business models, particularly those with international operations due to the associated risks and opportunities [2]

Core Viewpoint - IHS Holding reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.17 per share, and showing a significant earnings surprise of -41.18% compared to a loss of $0.07 per share a year ago [1][2] Financial Performance - The company posted revenues of $439.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.35% and showing an increase from $417.74 million year-over-year [2] - Over the last four quarters, IHS Holding has exceeded consensus revenue estimates four times, but has only surpassed consensus EPS estimates once [2] Stock Performance - IHS Holding shares have increased approximately 114% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $420.3 million, and for the current fiscal year, it is $0.72 on revenues of $1.7 billion [7] - The trend of estimate revisions for IHS Holding is mixed, which could change following the recent earnings report [6] Industry Context - The Communication - Infrastructure industry, to which IHS Holding belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The company reported a strong start to 2025 with a 26% organic revenue growth, driven by nearly 8% constant currency growth [5][6] - Adjusted EBITDA reached $253 million with a margin of 57.5%, up 1320 basis points year over year [6][17] - ALFCF was $150 million, an increase of approximately 248% year over year, attributed to improved profitability and rephasing of interest payments [6][17] - Total CapEx was $44 million, down 17.8% year over year, reflecting a narrowed focus on capital allocation [7][18] - The consolidated net leverage ratio decreased to 3.4x from 3.7x at the end of 2024 [7][25] Business Line Data and Key Metrics Changes - In Nigeria, revenue increased by 19% year on year, driven by FX resets, power indexation, and tenancy growth [20][21] - The Sub-Saharan Africa segment saw an 8.1% decrease in revenue, while adjusted EBITDA increased by 2.9% year on year [22] - The Latin America segment experienced a 0.5% decrease in revenue but a 5% increase in adjusted EBITDA [23] Market Data and Key Metrics Changes - The Nigerian FX market stabilized with the naira averaging $15.27 to the dollar in Q1 2025, down from $16.29 in Q4 2024 [19][20] - Inflation in Nigeria remained stable at 24.2% as of March 2025 [19] Company Strategy and Development Direction - The company is focused on improving profitability and cash flow generation while strengthening its balance sheet [7][9] - The strategic priority includes asset disposals, with the recent agreement to sell IHS Rwanda for an enterprise value of $274.5 million [8][9] - The company aims to maximize returns for stakeholders and is exploring further value-creative disposal opportunities [9][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for 2025, supported by improving macroeconomic conditions in Nigeria and Brazil [9][10] - The company is monitoring global macroeconomic uncertainties that could impact operations [39][40] - Management reiterated that the share price is undervalued and will continue to explore options to unlock shareholder value [43][75] Other Important Information - The company has over $900 million in available liquidity as of March 31, 2025 [7][25] - The Rwanda disposal is expected to close in the second half of 2025, with cash proceeds anticipated to be used for debt reduction [26][82] Q&A Session Summary Question: Was Q1 performance in line with expectations? - Management confirmed that Q1 performance was in line with expectations, with a strong start to the year [33][34] Question: What are the risks for the remainder of 2025? - Management noted that while the macro environment is performing better than expected, global uncertainties remain a concern [39][40] Question: Can you provide details on the Rwanda sale? - The Rwanda sale is expected to be all cash with an enterprise value of $274.5 million and no debt attached [68][70] Question: What is the outlook for EBITDA growth in Nigeria? - Management indicated that FX resets occur quarterly, and the current contracts are up to date, so no catch-up effect is expected [64][66] Question: What are the plans for capital allocation and shareholder returns? - Management is focused on debt reduction and will assess capital allocation options, including buybacks and dividends, later in the year [58][75]

Financial Data and Key Metrics Changes - The company reported a strong start to 2025 with a 26% organic revenue growth, driven by nearly 8% constant currency growth [5][6] - Adjusted EBITDA reached $253 million with a margin of 57.5%, up 1320 basis points year over year [6][18] - ALFCF was $150 million, representing a 248% increase year over year, attributed to improved profitability and rephasing of interest payments [6][18] - Total CapEx was $44 million, down 17.8% year over year, reflecting a narrowed focus on capital allocation [7][19] - The consolidated net leverage ratio decreased to 3.4x from 3.7x at the end of 2024 [8][26] Business Line Data and Key Metrics Changes - In Nigeria, revenue increased by 19% year on year, driven by FX resets, power indexation, and tenancy growth [21] - The Sub-Saharan Africa segment saw an 8.1% revenue decrease, while adjusted EBITDA increased by 2.9% year on year [22] - The Latin America segment experienced a 0.5% revenue decrease, but adjusted EBITDA increased by 5% [24] Market Data and Key Metrics Changes - The Nigerian FX market stabilized with the naira averaging $15.27 to the dollar in Q1 2025, down from $16.29 in Q4 2024 [20] - Inflation in Nigeria remained stable at 24.2% as of March 2025 [20] - The company noted a strong macroeconomic environment in Nigeria and Brazil, supporting growth opportunities [10] Company Strategy and Development Direction - The company is focused on improving profitability and cash flow generation while strengthening its balance sheet [8][10] - A strategic priority includes asset disposals, with the recent agreement to sell IHS Rwanda for $274.5 million, reflecting a transaction multiple of 8.3 times adjusted EBITDA [9][10] - The company aims to maximize returns for stakeholders and is exploring additional value-creative disposal opportunities [10][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for 2025, supported by improving macroeconomic conditions in key markets [10][40] - The company is monitoring global macroeconomic uncertainties that could impact operations [40][41] - Management reiterated that the first quarter performance was in line with expectations, with a positive outlook for the remainder of the year [34][35] Other Important Information - The company has approximately $4 billion in external debt and lease liabilities, with $629 million in cash and cash equivalents as of March 31, 2025 [25][26] - The withholding tax rate in Nigeria decreased from 10% to 2%, benefiting ALFCF cash conversion [19] Q&A Session Summary Question: Was Q1 performance in line with expectations? - Management confirmed that Q1 performance was in line with expectations, with a strong start to the year [34][35] Question: What risks are anticipated for the remainder of 2025? - Management noted that while the macro environment is improving, global uncertainties remain a concern [40][41] Question: Can you provide details on the asset sale program? - Management stated that while initial goals have been met, they will continue to explore additional disposals to unlock shareholder value [46][47] Question: What is the expected cash from the Rwanda sale? - The Rwanda sale is expected to generate $274.5 million in cash, with no debt attached to the asset [69][70] Question: What is the outlook for EBITDA growth in Nigeria? - Management indicated that FX resets will continue to impact EBITDA, but the focus will shift to organic growth drivers [64][66]

Financial Performance - Revenue reached $440 million in 1Q25, representing a 5.2% year-over-year increase[13, 21] - Adjusted EBITDA stood at $253 million in 1Q25, a 36.4% increase compared to 1Q24, with a margin of 57.5%[13, 21, 29] - Adjusted Levered Free Cash Flow (ALFCF) was $150 million in 1Q25, a significant 247.7% increase year-over-year[13, 21, 34] - Capex decreased by 17.8% year-on-year to $44 million in 1Q25[13, 21] - Net leverage improved to 3.4x, a reduction of 0.4x compared to 1Q24's 3.8x[13, 21] Portfolio and Operations - The company has a global tower portfolio of 39,212 towers across Africa and Latin America[16] - The company built 87 towers in 1Q25, including 74 in Brazil[15] - The colocation rate increased to 1.52x in 1Q25, up from 1.49x in 1Q24[21] - Lease amendments increased by 6.9% to 39,705 in 1Q25[21] Guidance and Outlook - The company reiterated its 2025 revenue guidance of $1,680 million to $1,710 million[13, 49] - The company reiterated its 2025 Adjusted EBITDA guidance of $960 million to $980 million[13, 49] - The company reiterated its 2025 ALFCF guidance of $350 million to $370 million[13, 49]

[PART I — FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section provides the interim financial statements and management's analysis of financial condition and operational results [Item 1. Interim Financial Statements](index=8&type=section&id=Item%201.%20Interim%20Financial%20Statements) The interim financial statements for Q1 2025 reveal a significant financial turnaround, driven by reduced finance costs and improved operational cash flow, despite continued negative equity [Condensed Consolidated Statement of Income/(Loss) and Other Comprehensive Income (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income/%28Loss%29%20and%20Other%20Comprehensive%20Income%20%28Unaudited%29) The Q1 2025 statement shows a significant shift to net income of $30.7 million from a substantial loss in the prior year, driven by reduced finance costs Condensed Consolidated Statement of Income/(Loss) and Other Comprehensive Income | Metric | Q1 2025 ($ million) | Q1 2024 ($ million) | | :--- | :--- | :--- | | **Revenue** | 439.6 | 417.7 | | Operating income/(loss) | 163.0 | (7.1) | | Finance costs | (114.3) | (1,563.0) | | **Income/(loss) for the period** | **30.7** | **(1,557.3)** | | Attributable to Owners of the Company | 33.1 | (1,553.4) | | **Income/(loss) per share ($) - basic** | **0.10** | **(4.67)** | - The company experienced a significant turnaround, shifting from a substantial loss of **$1.56 billion** in Q1 2024 to an income of **$30.7 million** in Q1 2025, primarily driven by a massive reduction in finance costs, which were heavily impacted by foreign exchange losses in the prior year[12](index=12&type=chunk) [Condensed Consolidated Statement of Financial Position (Unaudited)](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20%28Unaudited%29) The statement shows total assets of $4.42 billion and total liabilities of $4.60 billion, resulting in a negative equity of $(184.4) million, an improvement from year-end 2024 Condensed Consolidated Statement of Financial Position | Metric | March 31, 2025 ($ million) | December 31, 2024 ($ million) | | :--- | :--- | :--- | | Total Non-current assets | 3,454.9 | 3,352.7 | | Total Current assets | 961.2 | 924.3 | | **TOTAL ASSETS** | **4,416.1** | **4,277.0** | | Total Non-current liabilities | 3,845.0 | 3,879.2 | | Total Current liabilities | 755.5 | 693.6 | | **TOTAL LIABILITIES** | **4,600.5** | **4,572.8** | | **TOTAL EQUITY** | **(184.4)** | **(295.8)** | - As of March 31, 2025, the company's total liabilities of **$4.6 billion** exceeded its total assets of **$4.4 billion**, resulting in a negative total equity of **$(184.4) million**, representing an improvement from the negative equity of **$(295.8) million** at the end of 2024[13](index=13&type=chunk) [Condensed Consolidated Statement of Changes in Equity (Unaudited)](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20%28Unaudited%29) The statement indicates an improvement in total equity, moving from a $(295.8) million deficit to $(184.4) million, primarily due to comprehensive income - Total equity improved during the first quarter of 2025, moving from a deficit of **$(295.8) million** at the start of the year to a deficit of **$(184.4) million** at March 31, 2025, driven by a total comprehensive income of **$105.9 million** for the period[14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows (Unaudited)](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20%28Unaudited%29) The statement shows a significant increase in net cash from operating activities to $200.3 million, contributing to a positive net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows | Metric | Q1 2025 ($ million) | Q1 2024 ($ million) | | :--- | :--- | :--- | | Net cash from operating activities | 200.3 | 75.8 | | Net cash (used in)/from investing activities | (39.2) | 110.5 | | Net cash used in financing activities | (108.1) | (83.3) | | **Net increase in cash and cash equivalents** | **53.0** | **103.0** | | Cash and cash equivalents at end of period | 629.0 | 333.2 | - Net cash from operating activities increased significantly to **$200.3 million** in Q1 2025 from **$75.8 million** in Q1 2024, demonstrating improved operational cash generation[16](index=16&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=13&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) The notes provide details on segment reporting changes, including the MENA segment's discontinuation, and significant post-period events like asset sales and loan prepayments - The MENA (Middle East and North Africa) segment is no longer a reportable segment from March 31, 2025, onwards, following the sale of Kuwait operations in December 2024 and the decision not to commence operations in Egypt[42](index=42&type=chunk) Segment Revenue and Adjusted EBITDA | Segment | Revenue Q1 2025 ($ million) | Revenue Q1 2024 ($ million) | Segment Adjusted EBITDA Q1 2025 ($ million) | Segment Adjusted EBITDA Q1 2024 ($ million) | | :--- | :--- | :--- | :--- | :--- | | Nigeria | 271.4 | 227.7 | 179.2 | 102.9 | | SSA | 120.7 | 131.3 | 71.7 | 69.7 | | Latam | 47.5 | 47.8 | 35.6 | 33.8 | | MENA | — | 10.9 | — | 6.1 | - In Q1 2024, an impairment loss of **$87.9 million** against goodwill was recognized in the Latam segment, mainly due to the restructuring of customer Oi S.A. in Brazil[54](index=54&type=chunk) - Subsequent to the reporting period, on May 20, 2025, the Group agreed to sell 100% of its subsidiary IHS Rwanda Limited for a total consideration of up to **$274.5 million**, and in April 2025, a Nigerian subsidiary prepaid the outstanding balance of a **NGN 132 billion** (approx. **$85.8 million**) term loan[81](index=81&type=chunk)[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 revenue growth driven by organic performance, the shift to net income due to reduced finance costs, and strategic initiatives focused on cash flow and debt reduction [Overview](index=34&type=section&id=Overview) The overview describes the company as a leading independent shared communications infrastructure provider with a portfolio of 39,212 towers across Africa and Latin America - As of March 31, 2025, the company is one of the largest independent owners and operators of shared communications infrastructure globally, with a portfolio of **39,212 towers** across eight emerging markets in Africa and Latin America[85](index=85&type=chunk) - The core business involves providing services like Colocation, Lease Amendments, and New Site construction to Mobile Network Operators (MNOs), supporting **59,606 tenants** with a Colocation Rate of **1.52x** as of Q1 2025[87](index=87&type=chunk) [Strategic Review](index=34&type=section&id=Strategic%20review) The company is conducting a strategic review focused on enhancing shareholder value through commercial progress, governance improvements, asset disposals, and debt reduction - The company is conducting a strategic review aimed at creating shareholder value, with key initiatives including commercial progress, governance improvement, increasing Adjusted EBITDA and cash flow, disposing of certain assets, and reducing debt[89](index=89&type=chunk)[90](index=90&type=chunk) - Excess cash flow generated from these strategic initiatives is expected to be primarily used for debt reduction, though share buybacks or dividends may also be considered[90](index=90&type=chunk) [Factors Affecting Our Financial Condition and Results of Operations](index=38&type=section&id=Factors%20Affecting%20Our%20Financial%20Condition%20and%20Results%20of%20Operations) This section details key factors influencing financial performance, including organic growth drivers, foreign exchange and inflation mechanisms, customer concentration, and energy cost management - Key drivers of organic revenue growth are Colocation (adding new tenants to existing towers) and Lease Amendments (adding equipment for existing tenants), which significantly improve margins due to low incremental costs[107](index=107&type=chunk)[108](index=108&type=chunk) - Contracts generally include inflation-linked escalators (tied to local or U.S. CPI) and foreign exchange reset mechanisms, which help mitigate the impact of inflation and currency devaluation, albeit with a time lag[110](index=110&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - The company faces significant customer concentration risk, with the top three MNO customers in each market collectively accounting for **97.7%** of consolidated revenue in Q1 2025, and MTN Nigeria and Airtel Nigeria alone representing **48.5%** and **11.9%**, respectively[135](index=135&type=chunk) - Exposure to diesel price fluctuations has been significantly reduced following the unwind of a power management agreement in South Africa and the inclusion of a new diesel-linked component in renewed contracts with MTN Nigeria[133](index=133&type=chunk)[142](index=142&type=chunk) [Key Financial and Operational Performance Indicators](index=50&type=section&id=Key%20Financial%20and%20Operational%20Performance%20Indicators) This section outlines key financial and operational performance indicators, including the definition and reconciliation of Adjusted EBITDA, a crucial profitability metric Reconciliation of Income/(loss) for the period to Adjusted EBITDA | Metric | Q1 2025 ($ million) | Q1 2024 ($ million) | | :--- | :--- | :--- | | Income/(loss) for the period | 30.7 | (1,557.3) | | Adjustments (Tax, Finance, D&A, etc.) | 221.9 | 1,742.5 | | **Adjusted EBITDA** | **252.6** | **185.2** | | **Adjusted EBITDA Margin** | **57.5%** | **44.3%** | - Adjusted EBITDA is a key performance measure defined as income/(loss) before items such as income tax, finance costs/income, depreciation & amortization, impairment charges, and other non-core items[158](index=158&type=chunk) [Results of Operations](index=53&type=section&id=RESULTS%20OF%20OPERATIONS) Q1 2025 results show a 5.2% revenue increase driven by organic growth, a 36.4% surge in Adjusted EBITDA, and a shift to net income due to significantly reduced finance costs - Q1 2025 revenue increased **5.2%** YoY to **$439.6 million**, driven by **$107.2 million** in organic growth, partially offset by a **$74.1 million** negative impact from foreign currency translation, primarily the Nigerian Naira[169](index=169&type=chunk) - Adjusted EBITDA grew **36.4%** YoY to **$252.6 million**, with the margin expanding to **57.5%**, reflecting higher revenue and a **$41.6 million** decrease in cost of sales driven by lower net FX losses and cost-saving initiatives[172](index=172&type=chunk) - The company reported income of **$30.7 million** compared to a loss of **$1,557.3 million** in Q1 2024, mainly due to a **$1.46 billion** decrease in net finance costs as the prior year period included massive unrealized FX losses from Naira devaluation[173](index=173&type=chunk) [Segment Results](index=55&type=section&id=SEGMENT%20RESULTS) Segment results highlight Nigeria's strong revenue and EBITDA growth, SSA's EBITDA improvement despite revenue decline, and the discontinuation of the MENA segment Segment Performance Q1 2025 vs Q1 2024 | Segment | Revenue Change YoY | Adjusted EBITDA Change YoY | | :--- | :--- | :--- | | Nigeria | +19.1% | +74.1% | | SSA | -8.1% | +2.9% | | Latam | -0.5% | +5.3% | | MENA | -100.0% | -100.0% | - Nigeria's revenue grew **19.1%** to **$271.4 million**, and its Segment Adjusted EBITDA surged **74.1%** to **$179.2 million**, as strong organic growth from FX resets and escalations more than compensated for the negative impact of Naira devaluation[176](index=176&type=chunk)[178](index=178&type=chunk) - SSA revenue declined **8.1%** due to lower power pass-through revenue in South Africa (which has no impact on profit), but Segment Adjusted EBITDA still grew **2.9%** due to associated cost reductions[180](index=180&type=chunk)[182](index=182&type=chunk) - The MENA segment was discontinued following the disposal of the Kuwait business in December 2024, resulting in a year-over-year reduction of **$10.9 million** in revenue and **$6.1 million** in Segment Adjusted EBITDA[186](index=186&type=chunk) [Capital Expenditure](index=58&type=section&id=CAPITAL%20EXPENDITURE) Total capital expenditure decreased by **17.8%** to **$43.6 million** in Q1 2025, primarily due to reduced spending in Latam, aligning with the company's cash generation strategy - Total capital expenditure for Q1 2025 was **$43.6 million**, a decrease of **17.8%** from **$53.1 million** in Q1 2024, primarily driven by lower spending in the Latam segment, aligning with the company's strategy to improve cash generation[188](index=188&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong total liquidity of **$964.8 million**, comprising unrestricted cash and available credit facilities, supported by successful upstreaming from Nigerian operations - As of March 31, 2025, the company had total liquidity of **$964.8 million**, consisting of **$629.0 million** in unrestricted cash and cash equivalents and **$335.8 million** available under various credit facilities[196](index=196&type=chunk) - The company's Nigerian operations successfully upstreamed **$71.5 million** to the parent holding company during the first quarter of 2025[197](index=197&type=chunk)

Economic Indicators - The Nasdaq Composite, S&P 500, and Dow Jones Industrial Average gained 2.69%, 1.95%, and 0.58% respectively in the last trading week [1] - The consumer price index (CPI) rose by 0.2% in April, with a year-on-year increase of 2.3%, the lowest since February 2021 [2] - The producer price index (PPI) declined by 0.5% in April, with a 12-month increase of 2.4% [2] - Retail sales increased by 0.1% in April, aligning with market expectations [2] - Consumer sentiment index fell to 50.8% in May, the lowest in its history [2] Company Performance - IHS Holding Limited's shares increased by 33.6% since being upgraded to Zacks Rank 1 on March 21 [3] - British Land Company PLC returned 16% since its upgrade to Zacks Rank 2 on March 21 [4] - Stantec Inc. and Bankinter, S.A. saw share increases of 21.4% and 10.8% respectively after their upgrades to Outperform [8] - Axon Enterprise, Inc. and Quanta Services, Inc. gained 23.6% and 18.1% respectively over the past 12 weeks [11] Portfolio Performance - The Zacks Model Portfolio of Rank 1 stocks outperformed the S&P 500 index by over 12 percentage points since 1988, with an annualized average return of +23.5% [5][7] - The Zacks Focus List portfolio returned +18.41% in 2024, compared to +25.04% for the S&P 500 index [12] - The Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500 index's -4.30% decline [16] - The Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in Q1 2025, compared to the S&P 500 index's -2.41% pullback [19] Long-term Performance - The Top 10 portfolio has produced a cumulative return of +1832.3% since 2012, significantly outperforming the S&P 500 index's +434.2% [22] - The Zacks Focus List portfolio has an annualized return of +11.33% since 2004, compared to +9.95% for the S&P 500 index [14]

Core Viewpoint - IHS Holding Limited is expected to report strong first-quarter 2025 results, with earnings projected to increase significantly year-over-year, driven by growth in emerging markets and demand for communication infrastructure [1][4][16]. Financial Performance - The Zacks Consensus Estimate for earnings is 17 cents per share on revenues of $421.3 million, reflecting a 342.9% increase in earnings from the previous year and a 0.8% growth in revenues [1]. - First-quarter earnings estimates have been revised upward by 21.4% over the past 60 days [1]. - IHS has a history of earnings surprises, with an average surprise of negative 46.6% over the last four quarters, but achieved an 812.5% surprise in the last reported quarter [2][3]. Market Position and Growth Drivers - IHS is benefiting from its expanding presence in emerging markets, particularly in Africa, with solid demand for mobile communication infrastructure amid increasing 5G deployment [4][6]. - The company reported a total of 16,495 towers in Nigeria, a 0.6% year-over-year increase, contributing to its performance [5]. - The addition of approximately 100 towers and over 800 tenants in the SSA market in 2024 is expected to drive results [6]. Strategic Initiatives - IHS has successfully renewed and extended all MTN MLAs, including a significant deal with Airtel Nigeria to add 3,950 new tenancies [7]. - The company's strategic priorities and growth investments are anticipated to support sustained growth and shareholder value [16][17]. Valuation and Price Performance - IHS shares have increased by 55.6% over the past three months, outperforming the Zacks Communication - Infrastructure industry's growth of 13.2% and the S&P 500's decline of 4.1% [9]. - The forward 12-month price-to-earnings (P/E) ratio for IHS is 8.04X, below the industry average of 9.89X, indicating an attractive valuation for investors [13].

Core Viewpoint - IHS Holding Limited is expected to report first-quarter 2025 results on May 20, with a strong year-over-year revenue growth driven by high demand for communication infrastructure solutions [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for IHS Holding's revenues in the March quarter is $421.26 million, reflecting an increase from $417.74 million in the same quarter last year [5]. - The consensus estimate for adjusted earnings per share is set at 17 cents [5]. Group 2: Market Demand and Growth Drivers - IHS Holding is experiencing robust demand for its communication infrastructure services, particularly in emerging markets like Africa and Latin America, due to increased mobile adoption and high-bandwidth application usage [3]. - The company's initiatives in exploring new revenue opportunities in fiber, Distributed Antenna Systems, small cells, and data centers are contributing positively to its growth [2]. Group 3: Infrastructure Developments - IHS Brazil's neutral infrastructure model is facilitating 5G implementation in urban areas, with distributed antenna systems gaining traction in key locations such as shopping centers and airports [4]. - The company is investing in base transceiver stations, fiber connectivity, and telecom towers to enhance colocation opportunities, which is expected to positively impact first-quarter earnings [5].