Why Is SBA Communications (SBAC) Up 4.9% Since Last Earnings Report?

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].