What's in Store for SBA Communications (SBAC) in Q2 Earnings?

Core Viewpoint - The company is expected to report a decline in revenues year-over-year, but adjusted funds from operations (AFFO) per share are anticipated to grow slightly [11]. Financial Performance - The last reported quarter showed AFFO per share of $3.29, missing the Zacks Consensus Estimates by a cent, primarily due to lower site development revenues [2]. - The Zacks Consensus Estimate for total quarterly revenues is pegged at $664.5 million, indicating a year-over-year decline of 2.1% [5]. - The Zacks Consensus Estimate for second-quarter site-leasing revenues is $632.5 million, reflecting an increase from $626.1 million in the year-ago quarter [4]. Factors Influencing Results - The company benefits from long-term tower leases with built-in rent escalators, which support stable site-leasing revenues [3]. - The anticipated decrease in carrier activities is expected to lead to lower site-development revenues, with a consensus mark of $35.1 million, down from $52.4 million in the previous year [14]. - High interest rates and elevated churn in certain markets may have negatively impacted the company's quarterly performance [15]. Market Context - The wireless industry is experiencing secular growth trends, driven by advancements in mobile technology such as 4G and 5G networks, leading to increased mobile data usage globally [12]. - The company's healthy balance sheet is expected to support investments in existing 4G networks and efforts for 5G deployment, along with asset-base expansion through acquisitions [13].