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What Awaits SBA Communications (SBAC) This Earnings Season?
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SBA Communications Corporation (SBAC - Free Report) is scheduled to report third-quarter 2019 results on Oct 28, after the closing bell. In the last reported quarter, the company delivered positive earnings surprise of 3%. Markedly, SBA Communications topped the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 3.5%.
The communications tower operator is likely to report higher year-over-year revenues in both the operating segments on the back of solid domestic and international site leasing activity, and excellent services. While the focus remains on cost-control initiatives, it is finding accretive tower opportunities to create additional shareholder value.
Let’s find out how things are shaping up prior to the announcement.
Beginning third quarter, SBA Communications owned or operated 29,845 communication sites, of which, 16,371 are located in the United States and its territories. It is well positioned to drive its business supported by strong customer activity in both domestic and international markets, along with a healthy U.S. backlog. This is likely to have benefited the company in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from Site Leasing business, which accounts for the lion’s share of total revenues, is pegged at $464 million. Revenues of $430 million were reported in third-quarter 2018. Revenues from Site Development operations are estimated to be $30.4 million. The same was $26.4 million in the prior-year quarter.
For the September quarter, the consensus estimate for total revenues stands at $499 million. The company reported $467 million in the year-earlier quarter. Consequently, adjusted funds from operations (AFFO) on per share basis is pegged at $2.08. This reflects the synergies of a favorable demand environment, operational efficiency and strategic capital allocation, which are likely to have aided the company’s performance. It reported AFFO of $1.92 per share in the prior-year quarter.
Furthermore, operating profit from Site Leasing is expected to increase to $371 million from $336 million reported in the year-earlier quarter, while the same from Site Development is likely to improve to $7.3 million from $5.7 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SBA Communications this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as you’ll see below:
Earnings ESP: SBA Communications’ Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at $2.08. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SBA Communications currently has a Zacks Rank #3.
SBA Communications Corporation Price and EPS Surprise
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Incyte Corporation (INCY - Free Report) is scheduled to release results on Oct 29. The company has an Earnings ESP of +1.15% and carries a Zacks Rank #1.
Columbia Sportswear Company (COLM - Free Report) has an Earnings ESP of +1.57% and sports a Zacks Rank of 1. The company is likely to report results on Oct 30.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
What Awaits SBA Communications (SBAC) This Earnings Season?
SBA Communications Corporation (SBAC - Free Report) is scheduled to report third-quarter 2019 results on Oct 28, after the closing bell. In the last reported quarter, the company delivered positive earnings surprise of 3%. Markedly, SBA Communications topped the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 3.5%.
The communications tower operator is likely to report higher year-over-year revenues in both the operating segments on the back of solid domestic and international site leasing activity, and excellent services. While the focus remains on cost-control initiatives, it is finding accretive tower opportunities to create additional shareholder value.
Let’s find out how things are shaping up prior to the announcement.
Beginning third quarter, SBA Communications owned or operated 29,845 communication sites, of which, 16,371 are located in the United States and its territories. It is well positioned to drive its business supported by strong customer activity in both domestic and international markets, along with a healthy U.S. backlog. This is likely to have benefited the company in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from Site Leasing business, which accounts for the lion’s share of total revenues, is pegged at $464 million. Revenues of $430 million were reported in third-quarter 2018. Revenues from Site Development operations are estimated to be $30.4 million. The same was $26.4 million in the prior-year quarter.
For the September quarter, the consensus estimate for total revenues stands at $499 million. The company reported $467 million in the year-earlier quarter. Consequently, adjusted funds from operations (AFFO) on per share basis is pegged at $2.08. This reflects the synergies of a favorable demand environment, operational efficiency and strategic capital allocation, which are likely to have aided the company’s performance. It reported AFFO of $1.92 per share in the prior-year quarter.
Furthermore, operating profit from Site Leasing is expected to increase to $371 million from $336 million reported in the year-earlier quarter, while the same from Site Development is likely to improve to $7.3 million from $5.7 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SBA Communications this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as you’ll see below:
Earnings ESP: SBA Communications’ Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at $2.08. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SBA Communications currently has a Zacks Rank #3.
SBA Communications Corporation Price and EPS Surprise
SBA Communications Corporation price-eps-surprise | SBA Communications Corporation Quote
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Allstate Corporation (ALL - Free Report) is slated to release quarterly results on Oct 29. It has an Earnings ESP of +4.20% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Incyte Corporation (INCY - Free Report) is scheduled to release results on Oct 29. The company has an Earnings ESP of +1.15% and carries a Zacks Rank #1.
Columbia Sportswear Company (COLM - Free Report) has an Earnings ESP of +1.57% and sports a Zacks Rank of 1. The company is likely to report results on Oct 30.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>