We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SBA Communications (SBAC) Q4 Earnings: Is a Beat in Store?
Read MoreHide Full Article
SBA Communications Corp. (SBAC - Free Report) is scheduled to release fourth-quarter 2017 results, after the closing bell on Feb 26.
The company’s bottom-line met the Zacks Consensus Estimate in two of the trailing four quarters, while missing the same in other two. Consequently, it recorded an average miss of 5.93%.
Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that SBA Communications is likely to beat estimates because it has the right combination of the two key elements.
Zacks ESP: SBA Communications has an Earnings ESP of +24.82%. This is because the Most Accurate estimate is at 22 cents while the Zacks Consensus Estimate is pegged lower at 18 cents. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carriers a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of SBA Communications’ favorable Zacks Rank and positive ESP makes us confident of an earnings beat at the company.
What is Driving the Better-Than-Expected Earnings?
We are impressed with SBA Communications’ innovative network expansion methodologies which have helped it to substantially add subscribers and compete against market behemoths like American Tower Corp. (AMT - Free Report) and Crown Castle International Corp. (CCI - Free Report) in the global wireless tower market.
Wireless services are advancing rapidly in terms of additional features and capabilities. Much of the infrastructure and upgrades require effective site management of cell towers and equipment. SBA Communications effectively addresses this opportunity as over 90% of its quarterly revenues come from wireless service providers.
Moreover, wireless consumer demand is anticipated to increase considerably over the next several years, driven by increased innovation and adoption of data-driven mobile devices and applications such as machine-to-machine (M2M) connections, social networking and streaming of video. SBA Communications is a preferred partner for wireless service providers both in the United States and internationally, offering wireless customers in-depth management experience, scale and resources.
The company offers wireless service providers assistance in developing their own networks. Its services include site identification and acquisition as well as obtaining zoning approvals and permitting networks representing all technologies. SBA Communications also provides a broad range of cell site equipment installation, optimization and integration services. The company’s extensive site development experience includes participation in the development of more than 45,000 communication sites.
Buoyed by such tailwinds, SBA Communications’ share price gained 15.9% in the past six months surpassing the industry’s growth of 10.7%.
Meanwhile, customer concentration is very high for SBA Communications and the top four among its customers, namely, Verizon Wireless, AT&T, Sprint and T-Mobile, account for majority of its total quarterly revenues. The loss of any of these customers or consolidation among them will lead to a significant material impact on the company’s top line. Moreover, the ongoing consolidation trend among telecom and cable TV operators may cause significant financial fluctuations.
SBA Communications Corporation Price and EPS Surprise
Broadcom Ltd. (AVGO - Free Report) has the right combination of elements to deliver an earnings beat when it reports first-quarter fiscal 2018 results on Mar 7. Broadcom has an Earnings ESP of +1.08% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadcom’s bottom line surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.54%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
SBA Communications (SBAC) Q4 Earnings: Is a Beat in Store?
SBA Communications Corp. (SBAC - Free Report) is scheduled to release fourth-quarter 2017 results, after the closing bell on Feb 26.
The company’s bottom-line met the Zacks Consensus Estimate in two of the trailing four quarters, while missing the same in other two. Consequently, it recorded an average miss of 5.93%.
Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that SBA Communications is likely to beat estimates because it has the right combination of the two key elements.
Zacks ESP: SBA Communications has an Earnings ESP of +24.82%. This is because the Most Accurate estimate is at 22 cents while the Zacks Consensus Estimate is pegged lower at 18 cents. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carriers a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of SBA Communications’ favorable Zacks Rank and positive ESP makes us confident of an earnings beat at the company.
What is Driving the Better-Than-Expected Earnings?
We are impressed with SBA Communications’ innovative network expansion methodologies which have helped it to substantially add subscribers and compete against market behemoths like American Tower Corp. (AMT - Free Report) and Crown Castle International Corp. (CCI - Free Report) in the global wireless tower market.
Wireless services are advancing rapidly in terms of additional features and capabilities. Much of the infrastructure and upgrades require effective site management of cell towers and equipment. SBA Communications effectively addresses this opportunity as over 90% of its quarterly revenues come from wireless service providers.
Moreover, wireless consumer demand is anticipated to increase considerably over the next several years, driven by increased innovation and adoption of data-driven mobile devices and applications such as machine-to-machine (M2M) connections, social networking and streaming of video. SBA Communications is a preferred partner for wireless service providers both in the United States and internationally, offering wireless customers in-depth management experience, scale and resources.
The company offers wireless service providers assistance in developing their own networks. Its services include site identification and acquisition as well as obtaining zoning approvals and permitting networks representing all technologies. SBA Communications also provides a broad range of cell site equipment installation, optimization and integration services. The company’s extensive site development experience includes participation in the development of more than 45,000 communication sites.
Buoyed by such tailwinds, SBA Communications’ share price gained 15.9% in the past six months surpassing the industry’s growth of 10.7%.
Meanwhile, customer concentration is very high for SBA Communications and the top four among its customers, namely, Verizon Wireless, AT&T, Sprint and T-Mobile, account for majority of its total quarterly revenues. The loss of any of these customers or consolidation among them will lead to a significant material impact on the company’s top line. Moreover, the ongoing consolidation trend among telecom and cable TV operators may cause significant financial fluctuations.
SBA Communications Corporation Price and EPS Surprise
SBA Communications Corporation Price and EPS Surprise | SBA Communications Corporation Quote
Key Pick
Broadcom Ltd. (AVGO - Free Report) has the right combination of elements to deliver an earnings beat when it reports first-quarter fiscal 2018 results on Mar 7. Broadcom has an Earnings ESP of +1.08% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadcom’s bottom line surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.54%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>