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Market Update

American Tower Lifts Outlook on Wireless Data Growth, AES Raises Estimate


Author: Mukesh Buch
ticker.com
Last Update: 5:39 PM ET February 27 2017

3:10 PM New York – American Tower lifted revenue outlook. AES net loss widened but estimated average annual growth between 8% and 10%. Gogo surged after net loss narrowed and communication services provider lifted revenues forecast. Sotheby’s net swung to profit. Tegna net tumbled.

Tollbooth Index slipped 21.88 or 0.2% to 11,715.98.

Earnings Review

American Tower Corp (AMT) rose 22 cents to $113.11 after the communication real estate developer reported total revenues in the fourth-quarter ending in December surged 20.3% from a year ago at $1.5 billion.

Net income in the quarter fell 1.7% to $202.4 million or 47 cents per diluted share compared to $205.9 million or 48 cents per share in the same quarter last year.

American Tower forecasted revenues in the fiscal 2017 to jump 10.3% or between $6.2 billion and $6.4 billion and net income to soar 24.7% or in the range of $1.18 billion to $1.25 billion.

The communication tower developer said income tax provisions of $60.8 million in the quarter hurt the profit compared to the $25.9 million in a year ago period.

The AES Corporation (AES) declined 4.4% or 53 cents to $11.40 after the electricity services provider said revenues in the fourth-quarter ending in December soared 9.9% from a year ago to $3.5 billion.

Net loss in the quarter widened to $949 million or $1.44 per diluted share compared to $85 million or 13 cents per share in the same quarter last year.

Gogo Inc (GOGO) surged 16.5% or $1.50 to $10.62 after the wireless communication services provider said revenues in the fourth-quarter ending in December jumped 16% from a year ago to $160 million.

Net loss in the quarter narrowed to $26.9 million or 34 cents per diluted share compared to $33.9 million or 43 cents per share in the same quarter last year.

Gogo estimated revenues in the fiscal 2017 between $670 million and $695 million, growth of 12% to 17% from fiscal 2016.

Halyard Health Inc (HYH) slumped 2.8% or $1.14 to $40.30 after the healthcare services provider stated revenues in the fourth-quarter ending in December rose 2% from a year ago to $410 million.

Net income in the quarter tumbled 33.3% to $10 million or 21 cents per diluted share compared to $15 million or 31 cents per share in the same quarter last year.

Sotheby’s (BID) soared 11% or $4.41 to $44.50 after the auction services provider reported total revenues in the fourth-quarter ending in December plunged 8.1% from a year ago at $308.7 million.

Net in the quarter swung to profit of $65.5 million or $1.20 per diluted share compared to a loss of $11.2 million or 17 cents per share in the same quarter last year.

Tegna Inc (TGNA) jumped 4.3% or $1.06 to $25.86 after the broadcasting services provider said total revenues in the fourth-quarter ending in December soared 10.2% from a year ago to $887.4 million.

Net income in the quarter tumbled 14.6% to $133.1 million or 61 cents per diluted share compared to $155.9 million or 69 cents per share in the same quarter last year.

Tegna said revenues in the quarter improved mainly due to media and digital revenues increased 14.5% and 17.3% respectively and higher retransmission revenues and political spending.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc