Wireless tower operator SBA Communications beats Q3 revenue expectations

Overview

• SBA Communications Q3 revenue beats analyst expectations

• Net income for Q3 declines compared to last year

• Company repurchased 958 thousand shares during and after Q3

Outlook

• Company updates 2025 site leasing revenue outlook to $2,568.0 mln-$2,578.0 mln

• Company revises target leverage range to 6.0x-7.0x net debt to LQA Adjusted EBITDA

• Company sees 2025 adjusted EBITDA between $1,909.0 mln and $1,919.0 mln

Result Drivers

• CARRIER INVESTMENT - Co attributes Q3 performance to significant network investments by carrier customers, expanding and densifying networks

• INTERNATIONAL LEASING - Co benefited from strong international leasing demand, inflation-linked escalators, and favorable foreign currency rates

• VERIZON AGREEMENT - Co signed a long-term master lease agreement with Verizon, expected to accelerate rollout of next-gen wireless services

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for SBA Communications Corp is $237.50, about 19.4% above its October 31 closing price of $191.48

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nBw476V69a

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