Uniti Earnings: The Same Plodding Results Despite Enthusiasm and Financial Maneuvers

As usual, Uniti’s results were stable in the fourth quarter, and guidance for 2024 calls for more of the same. The growth rate can fluctuate from quarter to quarter, mostly as nonrecurring revenue arises. However, the Windstream master lease is still dominating the revenue base, and incremental fiber lease-ups are relatively small and steady. As a result, we see little realistic chance to deviate from low-single-digit growth each year as long as the Windstream lease is in place. That said, financial maneuvering could bring out some value in Uniti. We see the stock as undervalued relative to our unchanged $12 fair value estimate.