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SBA Communications to Report Q3 Earnings: What to Expect From SBAC?
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Key Takeaways
SBA Communications' Q3 revenues are projected to decline 0.7%, while AFFO per share may fall 6.67%.
SBAC's site-leasing revenues are expected to rise, aided by 5G expansion and international tower growth.
Tenant churn, weak site-development revenues, higher costs and interest expenses may weigh on SBAC.
SBA Communications Corporation (SBAC - Free Report) is scheduled to report third-quarter 2026 results on Nov. 2, after market close. The company’s quarterly results might display a decline in both revenues and adjusted funds from operations (AFFO) per share year over year.
In the last reported quarter, this Boca Raton, FL-based communications tower REIT reported an AFFO per share of $3.03, beating the Zacks Consensus Estimate of $2.96. Strong international site-leasing growth supported the top line, though domestic weakness and higher costs pressured profitability.
Over the preceding four quarters, SBAC’s AFFO per share surpassed the Zacks Consensus Estimate on three occasions and missed in the remaining period, the average beat being 2.30%. The graph below depicts this surprising history:
SBA Communications Corporation Price and EPS Surprise
SBA Communications is expected to report mixed third-quarter 2026 performance, with wireless infrastructure demand supporting leasing revenues, while tenant churn and cautious carrier spending are likely to have remained challenges.
Domestic leasing is likely to have benefited from continued 5G network expansion and new colocations. However, lower new leasing contributions and Sprint and EchoStar-related churn may have limited revenue growth.
International operations are expected to have benefited from Millicom tower contributions, increased tower construction and inflation-linked rental increases. However, elevated churn from carrier consolidation and network rationalization may have partly offset these gains.
Site development revenues may have remained under pressure amid cautious carrier spending. Meanwhile, operating costs are likely to have remained an important factor affecting tower cash flow margins. Higher interest expenses and a leveraged balance sheet are anticipated to have been additional headwinds. July's debt refinancing may have influenced third-quarter financing costs.
Q3 Projections for SBA Communications
The Zacks Consensus Estimate for third-quarter site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $676.95 million, indicating an increase from the year-ago quarter’s $656.43 million.
Site-development revenues are expected to have decreased in the third quarter. The consensus mark stands at $50.11 million, implying a fall from $75.90 million reported in the year-ago period.
The Zacks Consensus Estimate for total quarterly revenues is pegged at $727.06 million, suggesting a year-over-year decline of 0.7%.
The company’s activities in the to-be-reported quarter were not adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has decreased a cent to $3.08 over the past 60 days. The figure also implies a year-over-year decline of 6.67%.
Here’s What Our Quantitative Model Predicts for SBAC
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 #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 industry — American Healthcare REIT, Inc. (AHR - Free Report) and Innovative Industrial Properties, Inc. (IIPR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
American Healthcare REIT is slated to report quarterly numbers on Nov. 5. American Healthcare REIT has an Earnings ESP of +0.60% and carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Innovative Industrial Properties, which is scheduled to report quarterly numbers on Nov. 2, has an Earnings ESP of +1.64% and a Zacks Rank of 3.
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.
View the Zacks #1 Rank List
Image: Bigstock
SBA Communications to Report Q3 Earnings: What to Expect From SBAC?
Key Takeaways
SBA Communications Corporation (SBAC - Free Report) is scheduled to report third-quarter 2026 results on Nov. 2, after market close. The company’s quarterly results might display a decline in both revenues and adjusted funds from operations (AFFO) per share year over year.
In the last reported quarter, this Boca Raton, FL-based communications tower REIT reported an AFFO per share of $3.03, beating the Zacks Consensus Estimate of $2.96. Strong international site-leasing growth supported the top line, though domestic weakness and higher costs pressured profitability.
Over the preceding four quarters, SBAC’s AFFO per share surpassed the Zacks Consensus Estimate on three occasions and missed in the remaining period, the average beat being 2.30%. The graph below depicts this surprising history:
SBA Communications Corporation Price and EPS Surprise
SBA Communications Corporation price-eps-surprise | SBA Communications Corporation Quote
SBAC: Key Factors to Watch Ahead of Q3 Results
SBA Communications is expected to report mixed third-quarter 2026 performance, with wireless infrastructure demand supporting leasing revenues, while tenant churn and cautious carrier spending are likely to have remained challenges.
Domestic leasing is likely to have benefited from continued 5G network expansion and new colocations. However, lower new leasing contributions and Sprint and EchoStar-related churn may have limited revenue growth.
International operations are expected to have benefited from Millicom tower contributions, increased tower construction and inflation-linked rental increases. However, elevated churn from carrier consolidation and network rationalization may have partly offset these gains.
Site development revenues may have remained under pressure amid cautious carrier spending. Meanwhile, operating costs are likely to have remained an important factor affecting tower cash flow margins. Higher interest expenses and a leveraged balance sheet are anticipated to have been additional headwinds. July's debt refinancing may have influenced third-quarter financing costs.
Q3 Projections for SBA Communications
The Zacks Consensus Estimate for third-quarter site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $676.95 million, indicating an increase from the year-ago quarter’s $656.43 million.
Site-development revenues are expected to have decreased in the third quarter. The consensus mark stands at $50.11 million, implying a fall from $75.90 million reported in the year-ago period.
The Zacks Consensus Estimate for total quarterly revenues is pegged at $727.06 million, suggesting a year-over-year decline of 0.7%.
The company’s activities in the to-be-reported quarter were not adequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has decreased a cent to $3.08 over the past 60 days. The figure also implies a year-over-year decline of 6.67%.
Here’s What Our Quantitative Model Predicts for SBAC
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 #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 industry — American Healthcare REIT, Inc. (AHR - Free Report) and Innovative Industrial Properties, Inc. (IIPR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
American Healthcare REIT is slated to report quarterly numbers on Nov. 5. American Healthcare REIT has an Earnings ESP of +0.60% and carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Innovative Industrial Properties, which is scheduled to report quarterly numbers on Nov. 2, has an Earnings ESP of +1.64% and a Zacks Rank of 3.
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.