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SBA Communications shares fall on earnings miss, weak guidance

EditorLina Guerrero
Published 02/26/2024, 04:31 PM
© Reuters.

COLUMBUS, Ohio - SBA Communications Corporation (NASDAQ:SBAC), a leading wireless communications infrastructure company, reported fourth-quarter earnings that fell short of Wall Street expectations. The company's adjusted earnings per share (EPS) for the quarter was $1.01, missing the analyst consensus of $1.37. Revenue for the quarter also came in lower at $675.1 million, compared to the expected $682.11 million.

The company's stock price declined by 2.43% as investors reacted to both the earnings miss and the provided guidance for the fiscal year 2024, which trailed analyst estimates. SBA Communications anticipates full-year 2024 revenue to be between $2.669 billion and $2.709 billion. This guidance falls short of the consensus estimate of $2.743 billion. The midpoint of the guidance range, $2.689 billion, is still below the analyst expectations, signaling a cautious outlook from the company.

SBA Communications' guidance also notes potential additional capital expenditures for acquiring revenue-generating assets that are not currently identified or under contract. This uncertainty, coupled with the planned refinancing of the $620.0 million 2014-2C Tower Securities at a fixed rate of 6% on July 1, 2024, may have contributed to the negative investor sentiment.

The company's performance this quarter and its cautious forecast for the upcoming year reflect the challenges it faces amid an evolving industry landscape. Despite the setback, SBA Communications remains focused on its strategic objectives, including investments in digital and commercial initiatives, to drive long-term growth and shareholder value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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