Financial Data and Key Metrics Changes - The company increased its full year 2024 outlook across all key financial metrics due to stronger than expected leasing results and services performance [6][7][29] - Domestic same tower revenue growth for Q3 was 5.3% on a gross basis and 2% on a net basis, including 3.3% of churn [26] - International same-tower recurring cash leasing revenue growth was 3.1% net, including 4.3% of churn, with Brazil showing 6.5% gross organic growth [27][28] Business Line Data and Key Metrics Changes - The services business saw revenue up over 23% from the previous quarter and gross profit up over 33% due to increased construction activity from carrier customers [20] - The company anticipates a growing percentage of new business coming from new lease co-locations rather than amendments to existing leases, indicating a shift in business dynamics [7][41] Market Data and Key Metrics Changes - Domestic new carrier activity increased from the first half of the year, with applications and inquiries also on the rise [6][7] - International leasing results were in line with expectations, but challenges remain due to customer consolidations and network rationalization [11][12] Company Strategy and Development Direction - The company is focused on long-term customer relationships and aims to maximize growth through exceptional service and quality [10] - A significant acquisition agreement was signed with Millicom International Cellular for over 7,000 sites in Central America, enhancing the company's scale in the region [14][15] - The company is strategically reviewing operations in existing markets to maximize long-term growth potential and may consider divesting from markets where it lacks scale [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the international business, despite current challenges [13] - The company expects continued strong network investment driven by mobile network consumption growth and limited new spectrum availability [8][9] - Management noted that the services business is performing well and is set up for a strong finish to the year [23] Other Important Information - The company declared a cash dividend of $105.3 million or $0.98 per share for Q3, with a 15% increase expected for the fourth quarter [38] - The company has maintained a strong capital structure with leverage near historical lows and a fully undrawn $2 billion revolver [21][37] Q&A Session Summary Question: Can you size the mix of new leases versus amendments and the outlook for 2025? - Management noted an increase in carrier activity and a shift towards more co-locations, indicating a positive trend for future growth [41][42] Question: Can you provide more color on the Millicom deal's AFFO per share accretion? - Management stated it is premature to provide exact figures but confirmed it will be accretive to AFFO per share once closed [44] Question: What is the expected EBITDA multiple for the Millicom deal? - Management indicated that the incremental SG&A will be between $3 million and $5 million, suggesting a multiple around 11 times for the tower cash flow [48][49] Question: How does the company view its leverage and future capital allocation? - Management expressed no desire to lower leverage further, focusing instead on finding good investment opportunities or share repurchases [66] Question: What is the current churn rate and expectations for improvement? - The current non-Sprint churn rate is about 1.3%, with expectations to reduce it to around 1% next year [88]

PRESENTATION SBA Communications Corporation Third Quarter 2024 Supplemental Financial Data Key Financial and Operational Measures and Non-GAAP Financial Measures 2 This Supplemental Financial Data package provides key financial and operational data as well as reconciliations of those non-GAAP financial measures that SBA Communications Corporation ("SBA" or "We") use in evaluating the performance of our business. These non-GAAP financial measures include (1) Cash Site Leasing Revenue, (2) Core Recurring Cash ...

SBA Communications (SBAC) reported $667.6 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 2.2%. EPS of $3.32 for the same period compares to $0.80 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $668.95 million, representing a surprise of -0.20%. The company has not delivered EPS surprise, with the consensus EPS estimate being $3.32.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

SBA Communications (SBAC) came out with quarterly funds from operations (FFO) of $3.32 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $3.34 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this communications tower operator would post FFO of $3.28 per share when it actually produced FFO of $3.29, delivering a surprise of 0.30%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.SBA ...

SBA Communications Corporation (SBAC) is scheduled to report third-quarter 2024 results on Oct. 28 after the market closes. The company’s quarterly results may display a decline in revenues and adjusted funds from operations (AFFO) per share year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, this Boca Raton, FL-based communications tower REIT reported an AFFO per share of $3.29, beating the Zacks Consensus Estimate by a whisker. Results refl ...

Core Viewpoint - Analysts project that SBA Communications (SBAC) will report quarterly earnings of $3.32 per share, reflecting a year-over-year decline of 0.6%, with revenues expected to reach $668.95 million, down 2% from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has been revised 0.1% higher over the last 30 days, indicating a collective reevaluation by analysts [1] - Revenue from Site Development is projected at $37.78 million, showing a year-over-year decline of 16.2% [2] - International Site Leasing revenues are expected to be $166.70 million, down 1.4% from the prior-year quarter [2] - Domestic Site Leasing revenues are forecasted to reach $462.12 million, reflecting a year-over-year change of -1.3% [2] Group 2: Site Metrics - Estimated revenues from Site Leasing total $628.82 million, indicating a change of -1.4% from the prior-year quarter [3] - The consensus for International Sites owned is 22,411, up from 22,077 in the same quarter last year [3] - Domestic Sites owned are projected at 17,506, compared to 17,469 a year ago [3] - Total Sites owned are estimated at 39,947, compared to 39,546 last year [3] - Total Sites built is estimated at 128, up from 86 in the same quarter last year [3] Group 3: Profit and Depreciation Estimates - Segment operating profit for Site Leasing (Domestic + International) is expected to reach $515.51 million, down from $519.16 million year-over-year [3] - Segment operating profit for Site Development is projected at $10.32 million, compared to $13.61 million in the same quarter last year [4] - Depreciation, accretion, and amortization are estimated at $63.83 million, significantly lower than the year-ago figure of $180.67 million [4] Group 4: Stock Performance - SBA Communications shares have returned -0.2% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [4] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [4]

Since I last covered SBAC Communications Corporation (NASDAQ: SBAC ) back in May 2023 where I had a Hold position based on the need for a business reinvention, it suffered from a 19% downside as of October last year provingAs a tech-focused industry Research Analyst, I aim to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher from the financial sector, but, I come from the IT world as the Director of Keylo ...

SBA Communications (SBAC) shares soared 4% in the last trading session to close at $249.31. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.2% loss over the past four weeks. The increased investor optimism in the stock can be attributed to the favorable operating environment. This communications tower operator is expected to post quarterly funds from operations ( of $3.32 per share in its upcoming report, which represents a yea ...

Shares of SBA Communications (SBAC) have rallied 22% over the past three months, outperforming the industry's upside of 17.8%. This tower REIT is a leading independent owner and operator of wireless communications infrastructure. The company generates revenues from two primary businesses — site leasing (94.8% of the total revenues in the second quarter of 2024) and site development services (5.2%). Image Source: Zacks Investment Research Factors Behind SBAC Stock Price Rise: Will This Trend Last? Analysts s ...

Core Viewpoint - SBA Communications reported a mixed performance in its Q2 2024 earnings, with adjusted funds from operations (AFFO) per share beating estimates but total revenues declining year over year [2][3][10]. Financial Performance - Q2 2024 adjusted AFFO per share was $3.29, a 1.5% increase from the prior year, slightly above the Zacks Consensus Estimate [2]. - Total revenues for the quarter decreased by 2.7% year over year to $660.5 million, missing the Zacks Consensus Estimate of $664.5 million [3]. - Site-leasing revenues increased marginally to $626.5 million, with domestic revenues at $463.2 million (up 1.6% year over year) and international revenues at $163.3 million (down 2.9% year over year) [4][5]. Operational Insights - Site development revenues fell significantly by 35% year over year to $34 million, impacting overall results [5]. - The site-leasing operating profit was $512.3 million, with 98.7% of total operating profit derived from site leasing [5]. - Adjusted EBITDA was $467.1 million, a decrease of 1%, while the adjusted EBITDA margin improved to 71.3% from 70.3% in the prior year [5]. Portfolio Activity - In Q2, the company acquired 117 communication sites for $26.5 million and built 100 towers, bringing the total to 39,744 communication sites as of June 30, 2024 [6]. - Subsequent to the quarter, SBA Communications is under contract to acquire 106 additional communication sites for $49.3 million [7]. Cash Flow & Liquidity - Net cash from operating activities was approximately $425.6 million, down from $486.9 million in the previous year [8]. - As of June 30, 2024, the company had $309.4 million in cash and equivalents, an increase from $261.8 million as of March 31, 2024 [8]. - The company ended the quarter with a net debt-to-annualized adjusted EBITDA ratio of 6.4X [8]. Guidance and Outlook - The 2024 AFFO per share guidance was lowered to a range of $13.06-$13.43, down from $13.09-$13.46 [10]. - Site-leasing revenue guidance was revised down to $2,507-$2,527 million from $2,517-$2,537 million [10]. - Adjusted EBITDA guidance was also decreased to $1,876-$1,896 million from $1,889-$1,909 million [11]. Market Position - SBA Communications has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [14]. - The company has a Growth Score of B but lags in Momentum with a C, resulting in an aggregate VGM Score of C [13].