SBA Communications Q3 results beat, full-year guidance raised

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SBA Communications (NASDAQ:SBAC) Q3 profit and revenue both topped Wall Street expectations Monday, and the REIT increased its guidance for revenue, adjusted EBITDA and adjusted funds from operations.

The company, which owns and operates wireless communications infrastructure, sees 2022 revenues of $2.62B-2.64B, up $49.0M at the midpoint from the prior view. Adjusted EBITDA is expected to be $1.76B-1.77B this year, representing a $27.0M increase from the previous outlook. And AFFO is seen to be $12.12-12.34, rising 18 cents from the prior target.

Furthermore, the company's previously announced acquisition of 2,632 more towers in Brazil is expected to grow its portfolio of owned tower sites by ~15% in 2022, said CEO and President Jeffrey Stoops.

Q3 adjusted FFO of $3.10 exceeded the average analyst estimate of $2.60 and climbed from $2.71 in Q3 2021.

Revenue of $675.58M also surpassed the consensus of $651.4M, increasing from $589.8M in the year-ago quarter. Site leasing revenue came in at $587.3M vs. $535.5M in Q3 2021.

Operating expenses were $432.6M compared with $377.5M a year before.

Adjusted EBITDA was $446.8M vs. $302.5M in Q3 of last year.

Conference call at 5:00 p.m. ET.

Earlier, SBA Communications declared a quarterly dividend of CAD 0.71 a share.