American Tower 2Q Earnings Down 65% On 2008 Tax Benefit

   DOW JONES NEWSWIRES 
 

American Tower Corp.'s (AMT) second-quarter earnings slumped 65% on a prior-year tax benefit as demand remained strong for the cell-tower operator's antennas. But earnings fell short of analysts' expectations.

Cell-tower operators have benefited from volume increases, which have prompted wireless carriers to spend more on upgrades.

The company - which has communications sites in the U.S., Mexico, Brazil and India - reported a profit of $56.3 million, or 14 cents a share, down from $158.8 million, or 38 cents a share, a year earlier. Earnings from continuing operations rose to 13 cents a share from 12 cents.

Revenue increased 7.5% to $423.4 million.

Analysts polled by Thomson Reuters expected per-share earnings of 16 cents on revenue of $414 million.

In May, Moody's Investors Service raised its view on the company, saying American Tower's strong operating results and significant debt reduction the past couple of years bode well for a possible ratings increase to investment-grade.

And JPMorgan late last month boosted its stock-investment rating on the company to overweight, saying strong data trends, smartphone penetration and growth among unlimited carriers could lead to increased leasing demand for tower operations the rest of this year and into 2010.

Shares of American Tower, which reiterated its 2009 forecast, closed Tuesday at $33.53 and were inactive in premarket trading Wednesday.

-By Shara Tibken and Kevin Kingsbury, Dow Jones Newswires; 212-416-2189; [e-mail];