DOW JONES NEWSWIRES
American Tower Corp. (AMT) swung to a fourth-quarter profit on
increased revenue and strong demand.
Analysts are split about their outlook for the broadcast and
wireless tower operator's future. Some have cautioned that the
recent merger between Verizon Wireless and Alltel Corp. might
reduce the number of towers built. But others have said Sprint
Nextel Corp.'s (S) and ClearWire Corp.'s (CLWR) WiMax Internet
venture will spur construction of towers.
Chief Executive Jim Taiclet said the popularity of wireless
service and the competition for carriers to offer the best networks
was driving continued demand for towers.
The company posted net income of $85.8 million, or 22 cents a
share, compared with a year-earlier net loss of $5.5 million, or 1
cent a share, a year earlier. The latest results included $18.6
million in write-downs related to the company's previously
disclosed change in the estimated useful live of its towers.
Revenue increased 8% to $408.3 million.
Analysts surveyed by Thomson Reuters expected earnings of 14
cents on revenue of $407 million.
The company said it "significantly" cut back its repurchases of
its common shares because of the economic downturn and disruptions
in the credit markets. During the quarter, the company bought back
about 2.8 million shares for $79.4 million.
The company also said Steven Marshall, currently the executive
vice president for international business development, will assume
the role of executive vice president for the U.S. Tower division
effective March 9, replacing Steven Moskowitz, who will become an
adviser.
Looking ahead, the company affirmed its outlook for 2009
rental-and-management income of $1.64 billion to $1.67 billion and
earnings before interest, taxes, depreciation and amortization of
$1.16 billion to $1.19 billion. Analysts were recently looking for
Ebitda of $1.16 billion.
American Tower's shares closed Wednesday at $26.82 and haven't
traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com