SBA Communications Corp Stock Hold Recommendation Reiterated (SBAC)
- SBAC's very impressive revenue growth greatly exceeded the industry average of 1.9%. Since the same quarter one year prior, revenues leaped by 62.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.13% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SBA COMMUNICATIONS CORP has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SBA COMMUNICATIONS CORP reported poor results of -$1.50 versus -$1.14 in the prior year. This year, the market expects an improvement in earnings (-$0.43 versus -$1.50).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Wireless Telecommunication Services industry average, but is greater than that of the S&P 500. The net income increased by 1.1% when compared to the same quarter one year prior, going from -$22.63 million to -$22.38 million.
- The debt-to-equity ratio is very high at 7.70 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.34, which clearly demonstrates the inability to cover short-term cash needs.
--Written by a member of TheStreet Ratings Staff. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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