With a market cap of $26.4 billion, SBA Communications Corporation (SBAC) operates in the wireless communications infrastructure sector. It owns and manages over 39,000 sites, including towers and distributed antenna systems (DAS), primarily leasing antenna space to wireless service providers under long-term contracts. SBAC is expected to release its fiscal Q3 earnings results after the market closes on Monday, Oct. 28.
Ahead of this event, analysts project the wireless tower operator to report an AFFO of $3.17 per share, reflecting a decrease of 5.1% from $3.34 per share in the year-ago quarter. However, the company holds a solid track record of consistently surpassing Wall Street's bottom-line estimates in the last four quarterly reports. In the most recent quarter, SBAC surpassed the consensus AFFO estimate by 5.5%.
For fiscal 2024, analysts forecast SBAC to report AFFO of $12.52 per share, down 5% from $13.18 per share in fiscal 2023.
Over the past 52 weeks, SBA Communications surged 24.1%, underperforming the broader S&P 500 Index's ($SPX) 39.5% gain and the Real Estate Select Sector SPDR Fund's (XLRE) 38.3% returns over the same time frame.
Despite missing Q2 revenue estimates on Jul. 29, shares of SBA Communications rose marginally the following day as the company reported better-than-expected adjusted funds from operations (AFFO) of $3.29 per share, reflecting a 1.5% year-over-year increase. Additionally, the company reported a balanced approach to capital allocation, including portfolio expansion and stock repurchases, which reassured investors about its strategic direction. Despite a decrease in overall revenue and lowered guidance, the increase in domestic site leasing revenue and positive international leasing activity provided some optimism.
Analysts' consensus view on SBA Communications stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, 10 suggest a "Strong Buy," two give a "Moderate Buy," and five recommend a "Hold." As of writing, SBAC is trading below the average analyst price target of $252.76.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
