Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

SBA Communications (SBAC) To Report Q4 Earnings: What's Up?

By Zacks Investment ResearchStock MarketsFeb 18, 2020 09:11PM ET
SBA Communications (SBAC) To Report Q4 Earnings: What's Up?
By Zacks Investment Research   |  Feb 18, 2020 09:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

SBA Communications Corporation (NASDAQ:SBAC) is scheduled to report fourth-quarter and full-year 2019 results on Feb 20, after the closing bell. The company’s performance is likely to reflect year-over-year increases in both revenues and funds from operations (FFO) per share.

In the last reported quarter, this Boca Raton, FL-based communications tower REIT delivered a positive surprise of 3.37% in terms of funds from operations (FFO) per share. Results reflected year-over-year improvement in revenues. The top-line growth was supported by strong leasing and site development businesses.

For the trailing four quarters, SBA Communications has a decent surprise history, having beaten estimates on each occasion, the average positive beat being 3.63%. The graph below depicts this surprise history:

Let’s see how things are shaping up for this announcement.

Factors at Play

SBA Communications is well positioned to drive its business supported by strong customer activity in both domestic and international markets, along with a healthy U.S. backlog. This is likely to have benefited the company in the quarter under consideration.

The communications tower operator’s quarterly performance is likely to have gained from solid domestic and international site leasing activity, though moderation might have occurred in the services business. Nevertheless, the company is focusing on accretive tower opportunities to create additional shareholder value.

Beginning third quarter, SBA Communications owned or operated owned or operated 30,904 communication sites, of which, 16,385 are located in the United States and its territories.

The Zacks Consensus Estimate for the Site Leasing business revenues, which account for the lion’s share of total revenues, is pegged at $478 million, up from the $445 million reported in fourth-quarter 2018. However, revenues from Site Development operations are estimated to be $29.57 million. The same was $39.1 million in the prior-year quarter.

For the December-end quarter, the consensus estimate for total revenues stands at $507.02 million, suggesting 4.8% increase year on year. Consequently, the estimate for adjusted funds from operations (AFFO) per share is pinned at $2.16, indicating an 8% year-over-year increase. This reflects the synergies of a favorable demand environment, operational efficiency and strategic capital allocation, which are likely to have aided the company’s performance.

Furthermore, operating profit from Site Leasing is expected be up to $382 million from $292 million reported in the year-earlier quarter. However, the same from Site Development is likely to come at $6.1 million, down from $10.3 million reported in the prior-year period.

For full-year 2019, SBA Communications expects AFFO per share of $8.31-$ 8.54 and revenues of $1,994.0-$2,014.0 million. The Zacks consensus Estimate for the same is currently pinned at $8.46, indicating 11.3% year-over-year increase on revenues of $2.01 billion.

Here is what our quantitative model predicts:

Our proven model does not conclusively predict a positive surprise in terms of FFO per share for SBA Communications this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a FFO beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although SBA Communications carries a Zacks Rank of 2, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks That Warrant a Look

Here are a few stocks in the REIT sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:

Ventas, Inc. (NYSE:VTR) , slated to report fourth-quarter results on Feb 20, has an Earnings ESP of +0.81% and holds a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Jernigan Capital, Inc. (NYSE:JCAP) , scheduled to release earnings on Feb 26, has an Earnings ESP of +4.35% and currently carries a Zacks Rank of 3.

Urstadt Biddle Properties Inc. (NYSE:UBA) , expected to release quarterly numbers around Mar 13, has an Earnings ESP of +1.41% and carries a Zacks Rank of 3, currently.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

See 5 Stocks Set to Double>>

Ventas, Inc. (VTR): Free Stock Analysis Report

SBA Communications Corporation (SBAC): Free Stock Analysis Report

Urstadt Biddle Properties Inc. (UBA): Free Stock Analysis Report

Jernigan Capital, Inc. (JCAP): Free Stock Analysis Report

Original post
SBA Communications (SBAC) To Report Q4 Earnings: What's Up?

Related Articles

SBA Communications (SBAC) To Report Q4 Earnings: What's Up?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email