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SBA Communications (SBAC) to Post Q1 Earnings: What to Expect
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SBA Communications Corporation (SBAC - Free Report) is scheduled to report first-quarter 2020 results on May 5, after the closing bell. The company’s performance is likely to reflect year-over-year increases in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Boca Raton, FL-based communications tower REIT delivered a positive surprise of 0.9% in terms of FFO per share. Results reflected solid operating performance in its site leasing business and the company continued to benefit from the addition of sites to its portfolio.
For the trailing four quarters, SBA Communications has a decent surprise history, having beaten estimates on each occasion, the average positive surprise being 2.8%. The graph below depicts this surprise history:
SBA Communications Corporation Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors at Play
In first-quarter 2020, SBA Communications is expected to have continued benefitting from incredible mobile subscriber growth witnessed by the wireless tower industry. In fact, next-generation 4G LTE networks, heavy investments in future 5G networks, and the increased use of smartphones and tablets have been creating impressive demand for tower leasing. This is expected to have driven the tower operator’s domestic and international site leasing activities during the quarter under review.
Additionally, with increasing smartphone adoption, greater broadband demand and plans for 4G service worldwide, the company has been focusing on accretive tower opportunities beyond domestic borders to create additional shareholder value. This includes the purchase of 11 communication sites for $11.9 million in cash during the March-end quarter.
The Zacks Consensus Estimate for site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $478 million, suggesting a 5.7% rise from the year-ago quarter. However, revenues from Site Development operations are estimated to decline 29.6% year over year to $28.95 million. Consequently, total revenues for the quarter are likely to improve 3.7% year over year to $511.6 million.
Furthermore, operating profit from Site Leasing is expected to be up to $383 million from $359 million reported in the year-earlier quarter. However, the same from Site Development is likely to be $5.3 million, suggesting a decline from around $10 million reported in the prior-year period.
Also, prior to its quarterly earnings release, the company has been witnessing upward estimate revisions. As such, the Zacks Consensus Estimate for first-quarter FFO per share has been revised marginally upward to 2.26 cents over the past week, reflecting analysts’ bullish sentiments. Additionally, it suggests year-over-year growth of 9.2%.
Here is what our quantitative model predicts:
Our proven model predicts a beat in terms of FFO 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 odds of a FFO beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a few other stocks in the REIT sector that you may want to consider, as our model shows that these too have the right combination of elements to report a positive surprise this quarter:
Omega Healthcare Investors, Inc. (OHI - Free Report) , slated to report first-quarter results on May 4, has an Earnings ESP of +2.02% and a Zacks Rank of 3 at present.
CoreSite Realty Corporation (COR - Free Report) , slated to release first-quarter earnings on Apr 30, has an Earnings ESP of +3.19% and a Zacks Rank of 3 at present.
Americold Realty Trust (COLD - Free Report) , expected to release earnings results on May 7, currently has an Earnings ESP of +9.74% and a Zacks Rank #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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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SBA Communications (SBAC) to Post Q1 Earnings: What to Expect
SBA Communications Corporation (SBAC - Free Report) is scheduled to report first-quarter 2020 results on May 5, after the closing bell. The company’s performance is likely to reflect year-over-year increases in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Boca Raton, FL-based communications tower REIT delivered a positive surprise of 0.9% in terms of FFO per share. Results reflected solid operating performance in its site leasing business and the company continued to benefit from the addition of sites to its portfolio.
For the trailing four quarters, SBA Communications has a decent surprise history, having beaten estimates on each occasion, the average positive surprise being 2.8%. 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 are shaping up for this announcement.
Factors at Play
In first-quarter 2020, SBA Communications is expected to have continued benefitting from incredible mobile subscriber growth witnessed by the wireless tower industry. In fact, next-generation 4G LTE networks, heavy investments in future 5G networks, and the increased use of smartphones and tablets have been creating impressive demand for tower leasing. This is expected to have driven the tower operator’s domestic and international site leasing activities during the quarter under review.
Additionally, with increasing smartphone adoption, greater broadband demand and plans for 4G service worldwide, the company has been focusing on accretive tower opportunities beyond domestic borders to create additional shareholder value. This includes the purchase of 11 communication sites for $11.9 million in cash during the March-end quarter.
The Zacks Consensus Estimate for site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $478 million, suggesting a 5.7% rise from the year-ago quarter. However, revenues from Site Development operations are estimated to decline 29.6% year over year to $28.95 million. Consequently, total revenues for the quarter are likely to improve 3.7% year over year to $511.6 million.
Furthermore, operating profit from Site Leasing is expected to be up to $383 million from $359 million reported in the year-earlier quarter. However, the same from Site Development is likely to be $5.3 million, suggesting a decline from around $10 million reported in the prior-year period.
Also, prior to its quarterly earnings release, the company has been witnessing upward estimate revisions. As such, the Zacks Consensus Estimate for first-quarter FFO per share has been revised marginally upward to 2.26 cents over the past week, reflecting analysts’ bullish sentiments. Additionally, it suggests year-over-year growth of 9.2%.
Here is what our quantitative model predicts:
Our proven model predicts a beat in terms of FFO 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 odds of a FFO beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SBA Communications currently carries a Zacks Rank of 3 and has an Earnings ESP of +0.67%.You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks That Warrant a Look
Here are a few other stocks in the REIT sector that you may want to consider, as our model shows that these too have the right combination of elements to report a positive surprise this quarter:
Omega Healthcare Investors, Inc. (OHI - Free Report) , slated to report first-quarter results on May 4, has an Earnings ESP of +2.02% and a Zacks Rank of 3 at present.
CoreSite Realty Corporation (COR - Free Report) , slated to release first-quarter earnings on Apr 30, has an Earnings ESP of +3.19% and a Zacks Rank of 3 at present.
Americold Realty Trust (COLD - Free Report) , expected to release earnings results on May 7, currently has an Earnings ESP of +9.74% and a Zacks Rank #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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>