SBA Communications Corporation (SBAC Quick QuoteSBAC - Free Report) is scheduled to report first-quarter 2026 results on April 29, after market close. While the company’s quarterly results might display a rise in revenues year over year, adjusted funds from operations (AFFO) per share is expected to decline.

In the last reported quarter, this Boca Raton, FL-based communications tower REIT reported an AFFO per share of $3.19, missing the Zacks Consensus Estimate of $3.25. Results reflected growth in revenues during the quarter. However, higher costs and interest expenses undermined the performance to some extent.

Over the preceding four quarters, SBAC’s AFFO per share surpassed the Zacks Consensus Estimate on three occasions and missed on the remaining, the average beat being 1.12%. The graph below depicts this surprise history:

SBA Communications Corporation Price and EPS Surprise

SBA Communications Corporation price-eps-surprise | SBA Communications Corporation Quote

SBAC: Factors at Play

In the first quarter, SBA Communications is likely to have benefited from steady carrier spending on network expansion and 5G deployments, supporting leasing activity through new colocations and site upgrades. Its long-term contracts with built-in escalators are likely to have ensured stable site-leasing revenues, while services tied to network construction may have added to growth.

However, elevated churn — particularly Sprint-related in the United States and from carrier consolidation and restructuring internationally — may have weighed on performance. Higher interest expenses and a leveraged balance sheet could have been additional headwinds.

Projections for SBA Communications

The Zacks Consensus Estimate for first-quarter site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $650.8 million, indicating an increase from the year-ago quarter’s $616.2 million.

Site-development revenues are expected to remain flat in the first quarter. The consensus mark stands at $48 million, unchanged from the year-ago period.

The Zacks Consensus Estimate for total quarterly revenues is pegged at $698.8 million, calling for year-over-year growth of 5.2%.

The company’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has remained unchanged at $2.86 over the past two months. The figure also implies a year-over-year decline of 9.5%.

What Our Quantitative Model Predicts for SBA Communications

Our proven model does not conclusively predict a surprise in terms of AFFO 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 chances of an AFFO beat, which is not the case here.

SBA Communications currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — Ventas (VTR Quick QuoteVTR - Free Report) and Cousins Properties (CUZ Quick QuoteCUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

Ventas, scheduled to report quarterly numbers on April 27, has an Earnings ESP of +0.62% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins Properties, slated to release quarterly numbers on April 29, has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.