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CommScope Holding Company, Inc. (COMM - Free Report) recently released preliminary second-quarter 2024 results, offering a glimpse of its business performance amid a challenging macroeconomic landscape. The company is scheduled to release its second-quarter results on Aug 8, 2024.
Per the preliminary release, second-quarter 2024 net sales are expected to be $1.39 billion, with core net sales of $1.05 billion. The company’s performance was bolstered by strong sales in the Connectivity and Cable Solutions (CCS) and Outdoor Wireless Networks (OWN) segments, which offset weaker results in other areas. Positive trends included normalized inventory levels and heightened demand in key business units.
For the June quarter, management anticipates GAAP income from continuing operations to be around $75 million. The company's non-GAAP adjusted EBITDA is expected to be $302 million, driven by the CommScope NEXT initiative and reduced fixed costs.
Core non-GAAP adjusted EBITDA is estimated to reach $201 million. Additionally, the non-GAAP adjusted free cash flow for the second quarter is projected to be $69 million. The company expects cash and cash equivalents of $346 million in the second quarter.
CommScope entered into a definitive agreement earlier this month to sell its OWN segment and the DAS business unit to Amphenol Corporation for $2.1 billion in cash. Furthermore, management forecasts a strong performance in CommScope's second-quarter results backed by the improvements in core results, particularly in the CCS segment, with notable strength in its datacenter and cloud business.
Leveraging state-of-the-art technology, CommScope continues to innovate in wired and wireless networks to cater to the evolving demands of 5G technology and network convergence. Its product portfolio is specifically designed to assist global service providers in efficiently deploying fiber networks, bolstering its long-term growth prospects. The company also continues to be one of the leading suppliers of intelligent antenna platforms for FirstNet deployments.
Shares of CommScope have lost 48.7% over the past year compared with the industry’s decline of 40.6%.
Image Source: Zacks Investment Research
Zacks Rank and Key Picks
CommScope currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Ooma, Inc. (OOMA - Free Report) offers cloud-based communications solutions, smart security and other connected services. The company’s smart software-as-a-service and unified-communications-as-a-service platforms serve as a hub for seamless communications and networking infrastructure applications. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter average earnings surprise of 8.90%. In the last reported quarter, Ooma delivered an earnings surprise of 27.27%.
Telephone and Data Systems, Inc. (TDS - Free Report) , sporting a Zacks Rank of 1 at present, provides wireless products and services, cable and wireline broadband, TV and voice services to approximately 6 million customers in Chicago.
In the last reported quarter, TDS delivered an earnings surprise of 145.45%.
Motorola Solutions, Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola holds a Zacks Rank #2 (Buy).
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.
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CommScope (COMM) Reports Mixed Preliminary Q2 Results
CommScope Holding Company, Inc. (COMM - Free Report) recently released preliminary second-quarter 2024 results, offering a glimpse of its business performance amid a challenging macroeconomic landscape. The company is scheduled to release its second-quarter results on Aug 8, 2024.
Per the preliminary release, second-quarter 2024 net sales are expected to be $1.39 billion, with core net sales of $1.05 billion. The company’s performance was bolstered by strong sales in the Connectivity and Cable Solutions (CCS) and Outdoor Wireless Networks (OWN) segments, which offset weaker results in other areas. Positive trends included normalized inventory levels and heightened demand in key business units.
For the June quarter, management anticipates GAAP income from continuing operations to be around $75 million. The company's non-GAAP adjusted EBITDA is expected to be $302 million, driven by the CommScope NEXT initiative and reduced fixed costs.
Core non-GAAP adjusted EBITDA is estimated to reach $201 million. Additionally, the non-GAAP adjusted free cash flow for the second quarter is projected to be $69 million. The company expects cash and cash equivalents of $346 million in the second quarter.
CommScope entered into a definitive agreement earlier this month to sell its OWN segment and the DAS business unit to Amphenol Corporation for $2.1 billion in cash. Furthermore, management forecasts a strong performance in CommScope's second-quarter results backed by the improvements in core results, particularly in the CCS segment, with notable strength in its datacenter and cloud business.
Leveraging state-of-the-art technology, CommScope continues to innovate in wired and wireless networks to cater to the evolving demands of 5G technology and network convergence. Its product portfolio is specifically designed to assist global service providers in efficiently deploying fiber networks, bolstering its long-term growth prospects. The company also continues to be one of the leading suppliers of intelligent antenna platforms for FirstNet deployments.
Shares of CommScope have lost 48.7% over the past year compared with the industry’s decline of 40.6%.
Image Source: Zacks Investment Research
Zacks Rank and Key Picks
CommScope currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Ooma, Inc. (OOMA - Free Report) offers cloud-based communications solutions, smart security and other connected services. The company’s smart software-as-a-service and unified-communications-as-a-service platforms serve as a hub for seamless communications and networking infrastructure applications. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter average earnings surprise of 8.90%. In the last reported quarter, Ooma delivered an earnings surprise of 27.27%.
Telephone and Data Systems, Inc. (TDS - Free Report) , sporting a Zacks Rank of 1 at present, provides wireless products and services, cable and wireline broadband, TV and voice services to approximately 6 million customers in Chicago.
In the last reported quarter, TDS delivered an earnings surprise of 145.45%.
Motorola Solutions, Inc. (MSI - Free Report) provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola holds a Zacks Rank #2 (Buy).
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.