Shares of Florida-based SBA Communications fell more than 4% in extended trading.
High interest rates have forced wireless carriers to keep a tight leash on their budgets after the initial roll-out of 5G network, hitting demand for companies such as SBA Communications.
“New business execution in the US continued at a similar pace to the levels we have experienced the last few quarters, and internationally we saw a pick-up in new leasing activity,” CEO Brendan Cavanagh said in a statement.
SBA, which leases space and manages tower sites for wireless carriers including AT&T (NYSE:T), T-Mobile US (NASDAQ:TMUS) and Verizon Communications (NYSE:VZ), now forecast annual revenue to be between $2.64 billion and $2.67 billion, compared with its earlier expectations of between $2.66 billion and $2.70 billion.
In April, SBA had already cut its annual revenue forecast.
The real estate investment trust competes with other tower companies such as Crown Castle (NYSE:CCI) and American Tower (NYSE:AMT).
SBA’s second-quarter revenue fell about 3% to $660.5 million from a year earlier, missing analysts’ average estimate of $665.1 million, according to LSEG data.
Adjusted funds from operations – a key measure of cash flow for REITs – came in at $3.29 per share, 1.5% higher than a year earlier.
In the reported quarter, site leasing revenue stood at $626.5 million, compared with estimates of $629.5 million.
Source: Economy - investing.com
