SBA Communications Increases Guidance After Reporting Record Q2 Revenue and FFO
May 2, 2023
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SBA ($NASDAQ:SBAC) Communications Corporation (NASDAQ: SBAC) is a leading independent owner and operator of wireless communications infrastructure in the United States and international markets. SBA Communications cited an increase in their tower cash flow and an above-average site leasing activity as primary reasons for the positive guidance revision. The improved growth outlook also reflects the company’s strength in international and rural markets, as well as their ability to capitalize on new opportunities. This is an indication of the company’s continued success in the wireless infrastructure sector, which is expected to further expand in the coming years.
Share Price
The company’s stock opened at $258.3 and closed at $261.0, up 0.1% from the previous closing price of $260.9. SBA Communications is one of the foremost tower companies in the telecommunications industry, providing services such as wireless infrastructure, broadcast towers, and small cell sites to major customers. The company has seen significant growth in the past several years and is now facing a period of sustained demand. This was driven by growth in all key segments, with services and equipment revenues both increasing year-over-year.
The strong results and increased guidance have further solidified SBA Communications’ position in the industry, and the stock is expected to remain strong in the coming months. With an experienced management team that knows how to capitalize on new opportunities, SBA is well-positioned to continue its growth trajectory. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sba Communications. More…
| Total Revenues | Net Income | Net Margin |
| 2.63k | 461.43 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sba Communications. More…
| Operations | Investing | Financing |
| 1.29k | -1.39k | -135.47 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sba Communications. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.59k | – | -48.86 |
Key Ratios Snapshot
Some of the financial key ratios for Sba Communications are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 37.8% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale has analyzed the fundamentals of SBA COMMUNICATIONS and our Star Chart classifies it as a “cow”, a type of company that we conclude has a proven track record of paying out consistent and sustainable dividends. This type of company may be attractive to investors who are looking for steady income. The intermediate health score of 5/10 which GoodWhale gives SBA COMMUNICATIONS indicates that the company’s cash flows and debt are likely to sustain its operations in times of crisis. Furthermore, SBA COMMUNICATIONS is strong in dividend and growth, and medium in asset and profitability. More…
Peers
The U.S. tower industry is highly competitive with three dominant firms, SBA Communications Corp, American Tower Corp, and Crown Castle International Corp, accounting for more than 80% of the market. These firms have been in intense competition for market share since the early 1990s. The industry has seen consolidation through acquisitions and joint ventures, but the top three firms have remained the dominant players.
Equinix Inc is a newer entrant to the tower industry and has quickly become a major competitor. The company has a different business model than the traditional tower firms and focuses on providing colocation and interconnection services. Equinix has been successful in attracting major customers such as AT&T, Verizon, and Sprint.
– American Tower Corp ($NYSE:AMT)
American Tower is a leading independent owner, operator and developer of wireless and broadcast communications real estate. The company’s global portfolio includes more than 170,000 communications sites, including approximately 80,000 in the United States, approximately 70,000 in Europe, the Middle East and Africa, and approximately 20,000 in Latin America.
– Crown Castle International Corp ($NYSE:CCI)
Crown Castle International Corp is a publicly traded real estate investment trust (REIT) that owns, operates, and leases communications towers and other infrastructure in the United States. The company’s towers are used by wireless service providers to transmit voice and data traffic. Crown Castle also provides small cell solutions, which are used to increase capacity and coverage for wireless service providers. As of December 31, 2020, the company owned approximately 40,000 communications sites.
– Equinix Inc ($NASDAQ:EQIX)
Equinix, Inc. is a leading global provider of data center and interconnection solutions, with a market cap of $47.86B as of 2022. The company offers a variety of services including colocation, interconnection, and cloud exchange. Equinix operates in over 50 data centers across the globe, providing a reliable and secure platform for companies to operate their businesses. The company’s customer base includes a wide range of businesses from small businesses to large enterprises.
Summary
The company has further increased its guidance for the year due to the strong performance. This strong performance signals a positive outlook for investing in SBA Communications.
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