SBA Communications Raises Annual Forecast, Acquires 7,000 Sites

SBA Communications reported third-quarter net income of $255.9 million, or $2.40 per share, significantly up from $85.4 million a year ago, while adjusted funds from operations (FFO) came in at $3.32 per share, matching analysts' expectations. The company missed revenue estimates with $667.6 million, compared to a consensus of $669.81 million, and total revenues declined from $682.5 million in the prior year. Looking ahead, SBA raised its annual FFO forecast to a range of $13.20 to $13.45 per share, alongside an anticipated revenue of $2.66 to $2.68 billion, bolstered by strong carrier activity and the acquisition of over 7,000 communication sites in Central America from Millicom for approximately $975 million. This acquisition is expected to generate significant revenue and cash flow in the following years. Despite the positive adjustments to forecasts, SBA's shares have underperformed compared to the broader market this year, raising questions about future stock performance. CEO Brendan Cavanagh expressed optimism about sustained growth and the strategic importance of their acquisitions to enhance market leadership.