Boston, MA 05/15/2014 (wallstreetpr) – Wireless communications tower operator SBA Communications Corporation (NASDAQ:SBAC) is enjoying every moment in business. The company recently revealed improvement in its cash flow position at a time when it continues to make acquisitions to suppoits revenue growing. The company also reported improvement in profit, thanks to internal improvements that have led to significant cost-savings.
The company looks to a brighter future where growth in cash flow and profits will be commonplace. The company’s improving performance has attracted interest in Wall Street where analysts are sparing no effort to speak positively about the, especially after recent positive quarterly performances.
Many equity research firms have raised their price target on the company in recent notes to investors, reflecting the improving market condition and strong execution in the company. For example, analysts at Raymond James recently raised their price target on SBAC to $118, up from $110 per share. Separately, analysts at Evercore partners issued $111 price target on the shares of SBA Communications Corporation (NASDAQ:SBAC). The analysts previously had $103 per share price target on the stock.
On the average, Wall Street expects the company to $107.09 per share over the next 12 months. The stock carries a consensus “buy” recommendation.
Encouraging financial performance
SBA Communications Corporation (NASDAQ:SBAC) reported a strong 1Q2014 during which the company realized revenue of $345.5 million, an increase of more than 10 percent from the same quarter last year. The increase in revenue had a corresponding impact on the profit such that the company registered a profit of $1.4 million or $0.01 per share. The company suffered a loss of $22.4 million or $0.18 per share in the same quarter last year.
The company saw its cash flow up 20.5 percent to $237.5 million in the latest quarter.
Site leasing revenue
The increase in revenue in the latest quarter gained support from the strong revenue generated from site leasing. Revenue from the segment jumped more than 13 percent to $309.3 million. Site leasing revenue was up 67.2 percent abroad and 12.8 percent in the U.S. The segment remains a key growth driver in SBA Communications Corporation (NASDAQ:SBAC) and the company expects to boost its performance through more acquisitions.