American Tower Corporation (NYSE:AMT) Earnings Preview and Financial Health Analysis

Quarterly earnings set for release on July 29, 2025, with an expected EPS of $2.60 and projected revenue of $2.59 billion. Previous quarter's AFFO per share was $2.75, surpassing estimates due to growth in property and service operations segments. Financial health indicators show a P/E ratio of 58.86 and a high debt-to-equity ratio of 12.56, highlighting potential liquidity challenges.

American Tower Corporation (NYSE:AMT) is a leading global operator of wireless and broadcast communications infrastructure. The company owns and operates a vast portfolio of communication sites, including towers and data centers, which are essential for wireless communication and data transmission. As a key player in the telecommunications infrastructure sector, AMT competes with other major companies like Crown Castle and SBA Communications.

On July 29, 2025, AMT is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $2.60 and projected revenue of approximately $2.59 billion. Analysts are keen to see how AMT's performance aligns with these expectations, especially given the anticipated year-over-year decline in both revenues and adjusted funds from operations (AFFO) per share. Despite these expected declines, the services and data center segments are projected to show strong revenue growth compared to the previous year.

In the previous quarter, AMT reported an AFFO per share of $2.75, surpassing the consensus estimate of $2.60. This was driven by growth in its property and service operations segments. However, the upcoming earnings report may reflect challenges such as elevated churn in the U.S. and Canada and high interest costs, which could negatively impact the total property segment revenues.

AMT's financial metrics provide further insight into its valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 58.86, indicating that investors are willing to pay about $58.86 for every dollar of earnings. The price-to-sales ratio stands at 10.22, suggesting that investors are paying $10.22 for every dollar of sales. These ratios highlight the market's confidence in AMT's future growth potential.

However, AMT faces potential liquidity challenges, as indicated by its current ratio of 0.55, which suggests difficulty in meeting short-term obligations. Additionally, the debt-to-equity ratio is notably high at 12.56, indicating a significant reliance on debt financing. As the earnings release approaches, investors and analysts will be closely monitoring these financial metrics to assess AMT's operational and financial health.