American Tower Earnings: Continues to Secure Carrier Upgrades Amid a Slow Market

American Tower’s second-quarter 2024 earnings were a bright spot among the US tower firms as it continues to realize good organic tenant billings growth across all its markets, even as broader carrier activity remains fairly tepid. Increased guidance for property revenue, EBITDA, and AFFO was largely due to a partial reversal of revenue reserves in India that outweighed currency exchange headwinds realized in many of its international markets. We don’t view management’s guidance changes as material to our long-term view of American Tower but are impressed with the quarter and optimistic that the firm will drive even better organic tenant billings growth as the market improves in 2025. We are maintaining our $230 fair value estimate.