Is AMT's Q4 2024 EPS growth sustainable for 2025?
3/31/2025 05:30pm
**American Tower's (AMT) Q4 2024 EPS growth may not be fully sustainable for 2025**, based on several factors to consider:
1. **Growth Rate**: The MRQ for EPS showed a growth rate of 0.71%, which is relatively low and suggests that the company's EPS may not experience a significant increase in 2025.
|code|Ticker|Name|Date|Operating Cash Flow YoY|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|---|
|AMT|AMT.N|American Tower|2024 Q1|19.906585707613264|192.6031746031746|2.4176062445793582|172.22222222222223|169|
|AMT|AMT.N|American Tower|2024 Q2|10.67471473457913|96.83640303358612|4.639751776887831|88.23529411764704|169|
|AMT|AMT.N|American Tower|2024 Q3|12.978625249884669|-235.1810150701542|0.047598270596168335|-234.12698412698413|169|
|AMT|AMT.N|American Tower|2024 Q4|5.000437866713373|9151.87969924812|3.725418346158544||169|
2. **Market Position and Challenges**: Despite a strong market position, as indicated by its SWOT analysis, American Tower faces challenges such as currency fluctuations and higher churn rates due to the decommissioning of Sprint's network and consolidation among international customers. These factors could impact its EPS growth.
3. **Earnings Projection**: Analysts have projected a slight decrease in EPS for 2025, from $10.14 to $10.00 per share. This suggests that while the company may maintain its earnings, there is a possibility of a slight decline rather than continued growth.
4. **Strategic Focus**: American Tower is focusing on 5G network deployments and AI-driven demand potential, which could positively impact its growth. However, the sustainability of this focus and its impact on EPS growth are uncertain.
5. **Dividend and Financial Health**: The company has a history of consistent dividend payments, which is a positive sign for its financial health and potential for sustainable growth. However, the sustainability of its dividend in light of potential EPS fluctuations is worth monitoring.
In conclusion, while American Tower's Q4 2024 EPS growth is a positive sign, the low growth rate, external challenges, and analyst projections suggest that full sustainability for 2025 may be uncertain. The company's strategic focus and financial health indicators provide some optimism, but close monitoring of these factors will be crucial for assessing the sustainability of its EPS growth.