SBA Communications Earnings: Here’s Why Investors are Ambivalent Now

SBA Communications Corp. (NASDAQ:SBAC) delivered a profit and beat Wall Street’s expectations, AND met the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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SBA Communications Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.98 in the quarter versus EPS of $-0.20 in the year-earlier quarter.

Revenue: Rose 56.77% to $301.77 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SBA Communications Corp. reported adjusted EPS income of $0.98 per share. By that measure, the company beat the mean analyst estimate of $-0.21. It met the average revenue estimate of $301.77 million.

Quoting Management: “We posted excellent first quarter results, and are off to a strong start for 2013,” commented Jeffrey A. Stoops, President and Chief Executive Officer. “Our customers remain extremely busy with LTE deployments in the U.S. and with a variety of activity internationally. The combination of organic growth and a materially larger portfolio of towers drove strong year over year gains in both our leasing and services segments, as well as in adjusted EBITDA and AFFO per share. These results, combined with our current backlogs and our positive views on future customer activity, allow us to increase our 2013 Outlook for key metrics. In addition, we expect to continue to produce strong year over year growth in AFFO per share as we move through 2013 and beyond.”

Key Stats (on next page)…

Revenue increased 2.7% from $293.84 million in the previous quarter. EPS increased to $0.98 in the quarter versus EPS of $-0.41 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.15 to a loss $0.33. For the current year, the average estimate has moved down from a loss of $0.59 to a loss of $0.85 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)