- SBA Communications’ Adjusted Funds From Operations (AFFO) in Q4 reached $375.1 million, increasing by 2.6% compared to the previous year and surpassing the estimate of $361 million.
- AFFO per share increased to $3.47 from $3.37 year-on-year.
- Quarterly revenue was $693.7 million, a 2.8% increase year-over-year, beating the estimated $681.9 million.
- Adjusted EBITDA was $489.3 million, up 1.8% from last year, slightly exceeding the estimate of $487.3 million.
- The Adjusted EBITDA margin decreased to 70.6% from 71.6% the previous year, falling short of the estimated 71.3%.
- Capital expenditure decreased by 11% year-on-year, amounting to $55.5 million.
- For 2025, the company forecasts revenue between $2.69 billion and $2.74 billion, in line with an estimate of $2.72 billion.
- The company boasts a strong balance sheet with a net debt to Adjusted EBITDA leverage ratio of 6.1x at its lowest ever, and no debt maturities due in 2025.
- Post year-end, SBA exited operations in the Philippines and agreed to exit Colombia, refocusing on key markets.
- Strong annual free cash flow has enabled the company to increase its quarterly dividend by 13%.
- Market sentiment towards the company is positive, with 14 buy ratings, 7 holds, and no sell recommendations.
Sba Communications on Smartkarma
Independent analysts on Smartkarma are closely covering Sba Communications Corp (SBAC), a key player in wireless communications infrastructure. A recent report by Value Investors Club highlighted SBAC’s strong position in the mobile cellular industry, leveraging the increasing data consumption trend. The company has showcased impressive performance, boasting a 15% IRR since its IPO in 1999, attributed to strategic positioning, a robust business model, and a talented team. Analysts are optimistic about SBAC’s future growth prospects as it continues to benefit from the escalating demand for data, presenting an enticing opportunity for investors.
A look at Sba Communications Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, SBA Communications is positioned well for long-term growth and resilience in the wireless communications infrastructure sector. With solid scores in Growth and Resilience, the company is expected to continue expanding its operations and weathering challenges effectively. SBA Communications’ focus on leasing antenna space on its towers to multiple wireless service providers under long-term contracts indicates a stable revenue stream and potential for further development.
Although SBA Communications scores lower in terms of Value and Momentum, the company’s strong performance in Dividend payout reflects its commitment to rewarding shareholders. Overall, SBA Communications’ strategic positioning in the market and emphasis on long-term stability make it a promising investment opportunity with growth prospects in the wireless communications industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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