BOCA RATON - SBA Communications Corporation (NASDAQ:SBAC) released its first-quarter financial results, reporting a mixed performance with earnings surpassing analyst expectations while revenue fell short.
The company reported adjusted earnings per share (EPS) of $1.42, which was $0.25 higher than the analyst estimate of $1.17. However, revenue for the quarter was $657.9 million, not meeting the consensus estimate of $671.09 million and marking a 2.6% decline from the $675.5 million reported in the same quarter last year.
The company's President and CEO, Brendan Cavanagh, commented on the results, noting a solid start to the year with steady network investment across their portfolio despite macro-economic pressures. He also highlighted the company's share buyback initiative and the declaration of a quarterly dividend that is 15% higher than the previous year.
Despite the earnings beat, SBA Communications provided a revenue outlook for FY2024 that was lower than analyst expectations. The company now expects full-year revenue to be between $2.657 billion and $2.697 billion, with the midpoint of this range falling below the consensus estimate of $2.691 billion.
In the first quarter, the company experienced a decrease in site development revenues by 49.2% to $29.6 million from $58.2 million in the prior year, while domestic cash site leasing revenue saw a modest increase of 2.1%. The international segment also showed growth, with international cash site leasing revenue increasing by 2.8%, or 1.5% on a constant currency basis.
SBA Communications' net income for the quarter was $154.5 million, a significant increase from the $100.6 million reported in the first quarter of the previous year. This increase was partly due to a non-cash benefit related to the revision of the estimated useful lives of the company's towers and certain intangible assets.
The company's adjusted EBITDA for the quarter saw a slight increase of 1.3% to $465.4 million, with adjusted EBITDA margin improving to 71.2% from 68.7% in the prior year period. AFFO per share also grew by 5.1% to $3.29.
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