Why Is SBA Communications (SBAC) Down 4.7% Since Last Earnings Report?

A month has gone by since the last earnings report for SBA Communications (SBAC). Shares have lost about 4.7% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is SBA Communications due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for SBA Communications Corporation before we dive into how investors and analysts have reacted as of late.SBA Communications' Q3 AFFO Beats Estimates, Revenues Grow Y/YSBA Communications reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $3.30, beating the Zacks Consensus Estimate of $3.19. However, this compares unfavorably to the FFO of $3.32 in the prior-year period.The company’s results reflected growth in revenues during the quarter. However, higher costs and interest expenses undermined the performance to some extent.Total quarterly revenues increased 10% year over year to $732.3 million. Moreover, the figure surpassed the Zacks Consensus Estimate of $705.1 million.Third Quarter in DetailSite-leasing revenues rose 4.9% year over year to $656.4 million. Quarterly site-leasing revenues consisted of domestic site-leasing revenues of $470.3 million and international site-leasing revenues of $186.2 million. Domestic cash site-leasing revenues came in at $470.8 million, growing 1.5% year over year. International cash site-leasing revenues summed at $184 million, up 14.4% year over year.The site-leasing operating profit was $529.1 million, increasing 4.2% year over year. Moreover, 97.5% of its total operating profit in the quarter came from site leasing.Site development revenues surged 81.2% year over year to $75.9 million.The cost of site development increased significantly to $62.5 million, and interest expenses rose 25.5% year over year to $120.2 million.The overall operating income declined marginally to $374.2 million.Adjusted EBITDA totaled $493.3 million, up 4.4%, while the adjusted EBITDA margin decreased to 67.5% from 70.9% in the prior-year quarter.Portfolio ActivityIn the third quarter, SBA Communications acquired 447 communication sites, including Milicom’s 446 sites, for a total cash consideration of $142.8 million. The company also built 151 towers during this period. It owned or operated 44,581 communication sites as of Sept. 30, 2025, of which 17,409 were in the United States and its territories and 27,172 internationally.SBA Communications also spent $8.9 million to purchase land and easements and extend lease terms. The total cash capital expenditure was $71.9 million in the reported quarter, of which $57.5 million represented discretionary, and $14.4 million was non-discretionary.Following the quarter-end, SBA Communications closed on the 2,020 sites related to the Millicom transaction for $217.4 million in cash.As of Nov. 3, 2025, SBA Communications is under contract to buy 78 communication sites for a total consideration of $66.9 million in cash. It expects to complete the acquisition by the end of the first quarter of 2026.In October 2025, SBAC closed on its previously agreed 365 towers and related operations in Canada for CAD$446 million.Cash Flow & LiquidityAs of Sept. 30, 2025, SBA Communications had $0.5 billion in cash and cash equivalents, short-term restricted cash and short-term investments, up from $0.3 billion recorded as of June 30, 2025. SBA Communications ended the quarter with $12.3 billion in net debt and a net debt-to-annualized adjusted EBITDA of 6.2X.As of Nov. 3, 2025, the company had $385 million outstanding under the $2 billion revolving credit facility.During the third quarter, SBA Communications repurchased 748,000 shares of its Class A common stock for an aggregate amount of $154.1 million. Following the third quarter, the company further repurchased 210,000 shares of its Class A common stock for an aggregate amount of $40.2 million. After these repurchases, SBA Communications has $1.3 billion authorization under its stock repurchase plan as of Nov. 3, 2025.In the third quarter, SBA Communications generated nearly $318 million of net cash from operating activities compared with the year-ago quarter’s $304.7 million.2025 GuidanceSBA Communications now expects AFFO per share in the range of $12.76-$12.98 from the previously guided range of $12.65-$13.02.Further, adjusted EBITDA is expected within the $1,909-$1,919 million range.Site-leasing revenues are projected between $2,568 and $2,578 million. Site-development revenues are expected to be between $240 million and $250 million.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.VGM ScoresAt this time, SBA Communications has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SBA Communications has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerSBA Communications is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Ventas (VTR), a stock from the same industry, has gained 6.9%. The company reported its results for the quarter ended September 2025 more than a month ago.Ventas reported revenues of $1.49 billion in the last reported quarter, representing a year-over-year change of +20.4%. EPS of $0.14 for the same period compares with $0.80 a year ago.For the current quarter, Ventas is expected to post earnings of $0.89 per share, indicating a change of +9.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.1% over the last 30 days.Ventas has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SBA Communications Corporation (SBAC): Free Stock Analysis Report Ventas, Inc. (VTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks