Crown Castle Inc (NYSE:CCI) stock fell 6.01% (As on July 20, 11:34:35 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. During the second quarter, CCI’s site-rental revenues came in at $1.73 billion, up 10.3% year over year. The organic contribution of $155 million to the site rental revenues reflected 11.9% growth. When adjusted for the impact of Sprint cancellations, organic contribution to site rental revenues represented 4.2% growth. Our estimate for site-rental revenues was pegged at $1.68 billion. On the other hand, services and other revenues fell 16.8% year over year to $139 million. We estimated the same to be $180.5 million. Crown Castle exited second-quarter 2023 with cash and cash equivalents of $276 million, up from $187 million reported as of Mar 31, 2023. Moreover, debt and other long-term obligations aggregated $21.6 billion as of Jun 30, 2023, increasing marginally sequentially.

CCI in the second quarter of FY 23 has reported the adjusted funds from operations (AFFO) per share of $2.05, beating the analysts’ estimates for the adjusted earnings per share of $1.99, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7.6 percent to $1.87 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $1.86 billion. The operating income climbed 12.5% to $667 million. The quarterly adjusted EBITDA of $1.19 billion rose 10.2% year over year.

Additionally, Crown Castle reported capital expenditures of $379 million in the quarter. This comprised discretionary capital expenditures of $361 million and sustaining capital expenditures of $18 million. Discretionary capital expenditures primarily attributable to Fiber were around $298 million, and that to Towers was roughly $57 million.

Crown Castle, anticipating lower tower activity for the remainder of 2023 due to a reduction in network spending by wireless carriers, decreased its AFFO per share guidance in the range of $7.50-$7.58 from its prior estimation of $7.58-$7.68. The Zacks Consensus Estimate for the same is pegged at $7.64.

The company maintained its expectations for site rental revenues between $6.488 billion and $6.533 billion. It stated that the long-term leasing agreements with its customers are likely to have little impact on its site rental revenues.

Adjusted EBITDA is now projected in the band of $4.399-$4.444 billion, revised from $4.449-$4.494 billion estimated earlier.