SBA Communications Corporation Reports Q3 2024 Financial Results
SBA Communications Corporation (NASDAQ:SBAC) has released its financial results for the quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus |
|---|---|---|---|---|
| Total Revenue | $667.6 million | $682.5 million | -2.2% | $669.81M |
| Earnings Per Share (EPS) | $2.40 | $0.80 | +200.0% | $2.27 |
| Adjusted EBITDA | $472.6 million | $482.2 million | -2.0% | - |
| AFFO Per Share | $3.32 | $3.34 | -0.6% | - |
The reported results showed a decline in total revenue by 2.2% year-over-year. However, earnings per share saw an impressive growth to $2.40, significantly beating consensus estimates of $2.27. The decrease in adjusted EBITDA by 2.0% indicates modest operational constraints compared to the previous year.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change | Comments |
|---|---|---|---|---|
| Domestic Site Leasing | $464.9 million | $461.0 million | +0.6% | Stable performance, slight increase |
| International Site Leasing | $160.8 million | $169.4 million | -5.1% | Decrease due to currency fluctuations |
| Site Development | $41.9 million | $45.1 million | -7.1% | Reduced activity compared to last year |
The revenue breakdown suggests that domestic site leasing remained stable with a modest increase. International site leasing experienced a decline; however, on a constant currency basis, it increased by 2.8%, a silver lining amidst foreign exchange challenges.
Operational Highlights and Developments
- Net income rose to $255.9 million, with an EPS of $2.40.
- Issuance of $2.07 billion in Tower Securities at a favorable rate.
- Agreement to acquire over 7,000 sites in Central America from Millicom for $975.0 million.
- Board declared a quarterly cash dividend of $0.98 per share, payable December 12, 2024.
Executive Comments
Brendan Cavanagh, President and CEO, remarked, 'We continued to execute well during the third quarter, with solid operational and financial results. Increased carrier activity in the US and robust international leasing contributed to our strong performance. Our recent agreement with Millicom will position us as the leading tower company in Central America.'
Dividends and Share Repurchase Program
The company declared a cash dividend of $0.98 per share, indicating a continued commitment to returning value to shareholders. There were no repurchases of Class A common stock during the quarter, with $204.7 million remaining under the existing repurchase authorization.
Forward Guidance
SBA Communications increased its full-year 2024 outlook for all key metrics, anticipating continued momentum into the following year. This includes projections for robust acquisition growth and strategic investment developments.
Stock Market Reaction
Following the earnings release, SBA's stock price experienced a post-event decline of approximately 3.38%.
Overall, SBA Communications demonstrated strong financial management and strategic growth initiatives, despite some segment challenges. The company’s outlook remains positive, buoyed by strategic acquisitions and stable US market activity.
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