(Reuters) -SBA Communications beat third-quarter estimates and raised its annual revenue forecast on Monday, helped by steady demand for its site leasing services from mobile network operators.
The company is benefiting from increasing investments by mobile network operators to expand 5G and network capacity, driven by resilient consumer demand for connectivity, signaling steady site leasing activity for SBA.
The company owns and operates wireless communications infrastructure, including tower structures, rooftops and other structures.
Demand for bandwidth-intensive wireless data apps is surging, with consumers seeking faster connectivity to power services like HD streaming, generative AI and advanced gaming, helping companies such as SBA.
SBA, whose customers include wireless carriers such as AT&T, T-Mobile and Verizon, reported third-quarter revenue of $732.3 million, beating estimates of $716.2 million, according to data compiled by LSEG.
The company owned or operated 44,581 communication sites as of September 30.
SBA now expects full-year revenue to be between $2.81 billion and $2.83 billion, compared with its previous outlook of $2.78 billion to $2.83 billion. Analysts, on average, estimated a revenue of $2.81 billion for the year.
Rival American Tower beat Wall Street estimates for third-quarter revenue in late October, helped by strong data center demand and robust spending from telecom companies on network coverage.
Florida-based SBA posted adjusted FFO of $3.30 per share for the quarter ended September 30, compared with estimates of $3.21 apiece.
(Reporting by Nithyashree R B in Bengaluru; Editing by Alan Barona)
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