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What's in Store for SBA Communications (SBAC) in Q4 Earnings?
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SBA Communications Corporation (SBAC - Free Report) is scheduled to report fourth-quarter and full-year 2021 results on Feb 28 after market close. The results are expected to reflect year-over-year growth in quarterly revenues and funds from operations (FFO) per share.
This Boca Raton, FL-based communications tower REIT delivered a surprise of 2.26% in terms of adjusted FFO (AFFO) per share in the last reported quarter. Results highlighted the robust operating performance in both its site-leasing and development business. SBA Communications continued to benefit from the addition of sites to its portfolio.
Over the preceding four quarters, SBAC’s AFFO per share surpassed the Zacks Consensus Estimate on each occasion, the average beat being 2.89%. The graph below depicts this surprise history:
SBA Communications Corporation Price and EPS Surprise
Let’s see how things have shaped up before this announcement.
Factors at Play
During the fourth quarter, tower REITs like SBA Communications are likely to have benefited from secular growth trends in the wireless industry. As the data volume for the wireless and wired networks has been growing rapidly amid the widespread adoption of smartphones and applications, network carriers have continued to spend on network deployments in a bid to harness spectrum abilities as well as improve and densify their cell sites and coverage.
The long-term (typically five to15 years) tower lease agreements that have built-in rent escalators are anticipated to have contributed to recurring site rentals during the October-end quarter. The consensus estimate for fourth-quarter site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $540 million, suggesting marginal growth from $536 million and a substantial increase from the year-ago quarter’s tally of $493 million.
Further, acquisitions and developments are likely to have expanded the asset base and aided revenues during the quarter in discussion. Subsequent to the third-quarter 2021 end, the company purchased or agreed to purchase 1700 communication sites for $231 million, of which nearly 1,400 sites and roughly $175 million of cash are related to the previously announced deal to acquire towers from Airtel Tanzania.
The Zacks Consensus Estimate for fourth-quarter site-development revenues is pegged at $52 million. This calls for growth from $42.96 million in the year-ago period, slightly down from $54 million in the prior quarter.
The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $592.33 million. This calls for year-over-year growth of 10.5%.
SBA Communications’ activities during the quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has been revised marginally upward to $2.80 over the past two months. Also, it suggests year-over-year growth of 12.45%.
For full-year 2021, SBAC projects AFFO per share in the range of $10.55-$10.76. Site-leasing revenues are projected in the range of $2,095-$2,105 million and site-development revenues are expected between $195 million and $205 million. Moreover, adjusted EBITDA is predicted between $1,599 million and $1,609 million.
For the full year, the Zacks Consensus Estimate for FFO per share has remained unrevised at $10.72 over the past month. However, the figure indicates a 13.6% increase year over year in revenues of $2.31 billion.
SBA Communications currently carries a Zacks Rank of 4 (Sell).
American Tower Corporation (AMT - Free Report) reported fourth-quarter 2021 adjusted FFO for common stockholders of $2.10 per share, which lagged the Zacks Consensus Estimate of $2.17. However, the bottom line improved 1.4% year over year. American Tower generated total revenues of $2.45 billion, which beat the consensus mark of $2.41 billion. Also, the top line grew 15.2% year over year. Quarterly results of AMT reflected improving revenues across both Property and Service operations. American Tower also recorded strong year-over-year organic tenant billings growth of 11.7%.
Crown Castle International Corp.’s (CCI - Free Report) fourth-quarter 2021 adjusted FFO per share of $1.77 surpassed the Zacks Consensus Estimate of $1.71. However, the figure was 26.6% lower than the year-ago quarter’s $2.33. Net revenues of $1.65 billion improved 10.8% year over year in the fourth quarter. Further, the top line beat the Zacks Consensus Estimate of $1.63 billion. The growth in site-rental revenues amid elevated tower space demand aided Crown Castle International’s top line. Also, declining operating expenses acted as a tailwind for CCI.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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What's in Store for SBA Communications (SBAC) in Q4 Earnings?
SBA Communications Corporation (SBAC - Free Report) is scheduled to report fourth-quarter and full-year 2021 results on Feb 28 after market close. The results are expected to reflect year-over-year growth in quarterly revenues and funds from operations (FFO) per share.
This Boca Raton, FL-based communications tower REIT delivered a surprise of 2.26% in terms of adjusted FFO (AFFO) per share in the last reported quarter. Results highlighted the robust operating performance in both its site-leasing and development business. SBA Communications continued to benefit from the addition of sites to its portfolio.
Over the preceding four quarters, SBAC’s AFFO per share surpassed the Zacks Consensus Estimate on each occasion, the average beat being 2.89%. The graph below depicts this surprise history:
SBA Communications Corporation Price and EPS Surprise
SBA Communications Corporation price-eps-surprise | SBA Communications Corporation Quote
Let’s see how things have shaped up before this announcement.
Factors at Play
During the fourth quarter, tower REITs like SBA Communications are likely to have benefited from secular growth trends in the wireless industry. As the data volume for the wireless and wired networks has been growing rapidly amid the widespread adoption of smartphones and applications, network carriers have continued to spend on network deployments in a bid to harness spectrum abilities as well as improve and densify their cell sites and coverage.
The long-term (typically five to15 years) tower lease agreements that have built-in rent escalators are anticipated to have contributed to recurring site rentals during the October-end quarter. The consensus estimate for fourth-quarter site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $540 million, suggesting marginal growth from $536 million and a substantial increase from the year-ago quarter’s tally of $493 million.
Further, acquisitions and developments are likely to have expanded the asset base and aided revenues during the quarter in discussion. Subsequent to the third-quarter 2021 end, the company purchased or agreed to purchase 1700 communication sites for $231 million, of which nearly 1,400 sites and roughly $175 million of cash are related to the previously announced deal to acquire towers from Airtel Tanzania.
The Zacks Consensus Estimate for fourth-quarter site-development revenues is pegged at $52 million. This calls for growth from $42.96 million in the year-ago period, slightly down from $54 million in the prior quarter.
The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $592.33 million. This calls for year-over-year growth of 10.5%.
SBA Communications’ activities during the quarter were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has been revised marginally upward to $2.80 over the past two months. Also, it suggests year-over-year growth of 12.45%.
For full-year 2021, SBAC projects AFFO per share in the range of $10.55-$10.76. Site-leasing revenues are projected in the range of $2,095-$2,105 million and site-development revenues are expected between $195 million and $205 million. Moreover, adjusted EBITDA is predicted between $1,599 million and $1,609 million.
For the full year, the Zacks Consensus Estimate for FFO per share has remained unrevised at $10.72 over the past month. However, the figure indicates a 13.6% increase year over year in revenues of $2.31 billion.
SBA Communications currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Notable REITs
American Tower Corporation (AMT - Free Report) reported fourth-quarter 2021 adjusted FFO for common stockholders of $2.10 per share, which lagged the Zacks Consensus Estimate of $2.17. However, the bottom line improved 1.4% year over year. American Tower generated total revenues of $2.45 billion, which beat the consensus mark of $2.41 billion. Also, the top line grew 15.2% year over year. Quarterly results of AMT reflected improving revenues across both Property and Service operations. American Tower also recorded strong year-over-year organic tenant billings growth of 11.7%.
Crown Castle International Corp.’s (CCI - Free Report) fourth-quarter 2021 adjusted FFO per share of $1.77 surpassed the Zacks Consensus Estimate of $1.71. However, the figure was 26.6% lower than the year-ago quarter’s $2.33. Net revenues of $1.65 billion improved 10.8% year over year in the fourth quarter. Further, the top line beat the Zacks Consensus Estimate of $1.63 billion. The growth in site-rental revenues amid elevated tower space demand aided Crown Castle International’s top line. Also, declining operating expenses acted as a tailwind for CCI.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.