Shares of IHS Holding (NYSE: IHS) were moving higher today after the global cell tower operator posted strong results in its fourth-quarter earnings report, as the company easily beat top-line estimates and issued better-than-expected guidance for 2023.
The stock closed up 20.2% on the news.
Revenue in the quarter jumped 26.6%, or 23.5% on an organic basis to $526.2 million, which easily beat the consensus at $486.8 million.
The company also delivered strong profitability on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis, with adjusted EBITDA at $272.7 million, good for a margin of 52%, and up 26% from the year before.
On the bottom line, the company posted a per-share loss of $0.82, as it took unrealized losses for currency exchange and its interest expense rose as interest rates went up. While that was significantly worse than the consensus at a per-share profit of $0.04, investors seemed to overlook it, given the strong revenue, EBITDA, and cash flow.
Touting the results for the full year, CEO Sam Darwish said, “During 2022 we accomplished a lot, which we believe demonstrates not just the growth potential within our business, but also its resilience in the challenging global macroeconomic environment.”
Looking ahead, the company expects organic revenue to jump 23% to $2.19 billion-$2.22 billion, which was better than the consensus at $2.09 billion, and it sees adjusted EBITDA of $1.2 billion-$1.22 billion. It also plans to build 1,200 new towers, of which 750 will be in Brazil.
With a unique focus on developing countries, IHS is delivering strong growth in a difficult macro environment. If it can maintain that growth rate, the recent IPO should have more upside ahead.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
Stock Advisor returns as of March 8, 2023
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.