What occurred

Shares of IHS Holding (IHS 20.28%) had been transferring larger at the moment after the worldwide cell tower operator posted robust ends in its fourth-quarter earnings report, as the corporate simply beat top-line estimates and issued better-than-expected steering for 2023.

The inventory closed up 20.2% on the information.

Picture supply: Getty Photographs.

So what

Income within the quarter jumped 26.6%, or 23.5% on an natural foundation to $526.2 million, which simply beat the consensus at $486.8 million. 

The corporate additionally delivered robust profitability on an adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) foundation, with adjusted EBITDA at $272.7 million, good for a margin of 52%, and up 26% from the 12 months earlier than.  

On the underside line, the corporate posted a per-share lack of $0.82, because it took unrealized losses for forex change and its curiosity expense rose as rates of interest went up. Whereas that was considerably worse than the consensus at a per-share revenue of $0.04, traders appeared to miss it, given the robust income, EBITDA, and money circulate.

Touting the outcomes for the complete 12 months, CEO Sam Darwish mentioned, “Throughout 2022 we completed lots, which we imagine demonstrates not simply the expansion potential inside our enterprise, but in addition its resilience within the difficult world macroeconomic setting.”

Now what

Trying forward, the corporate expects natural income to leap 23% to $2.19 billion-$2.22 billion, which was higher than the consensus at $2.09 billion, and it sees adjusted EBITDA of $1.2 billion-$1.22 billion. It additionally plans to construct 1,200 new towers, of which 750 can be in Brazil.

With a novel deal with creating nations, IHS is delivering robust progress in a troublesome macro setting. If it could possibly keep that progress price, the latest IPO ought to have extra upside forward.