What's in the Cards for SBA Communications This Earnings Season?

Core Viewpoint - SBA Communications Corporation (SBAC) is expected to report fourth-quarter and full-year 2024 results on February 24, with anticipated revenue growth but a potential decline in adjusted funds from operations (AFFO) per share year over year [1][6]. Financial Performance - In the last reported quarter, SBAC achieved an AFFO per share of $3.32, meeting the Zacks Consensus Estimate, with slight improvements in domestic cash site-leasing revenues due to increased carrier activity, although site development revenues negatively impacted results [2][3]. - Over the past four quarters, SBAC's AFFO per share exceeded the Zacks Consensus Estimate twice, met once, and missed once, with an average beat of 0.38$639.2 million, a slight increase from $636.1 million in the previous year, while site-development revenues are projected to rise to$39.7 million from $38.9 million [5]. - Total quarterly revenues are estimated at$681.7 million, reflecting a 1% year-over-year increase [6]. Full-Year Expectations - For full-year 2024, SBAC anticipates AFFO per share between $13.20 and$13.45, site-leasing revenues between $2,520 million and$2,530 million, site-development revenues between $140 million and$150 million, and adjusted EBITDA between $1,890 million and$1,900 million [7]. - The Zacks Consensus Estimate for full-year 2024 AFFO per share is $13.24, indicating a 0.46$2.67 billion, suggesting a decline of 1.62% year over year [8]. Market Dynamics - The demand for SBA Communications' wireless infrastructure is driven by increasing smartphone adoption, greater broadband demand, and global 5G service plans, which may positively influence fourth-quarter performance [3][4]. - The company's stable site-leasing business model and portfolio expansion efforts are seen as positive factors, although ongoing consolidation in the wireless industry and high interest expenses may pose challenges [4].