CommScope Holding Company, Inc. (COMM - Free Report) reported mixed fourth-quarter 2020 results, wherein the top line missed the Zacks Consensus Estimate but the bottom line beat the same.
The Hickory, NC-based network connectivity solutions provider’s share price fell 12.6% on Feb 17, closing the trading session at $13.83.
Bottom Line
On a GAAP basis, net income in the December quarter was $9.6 million or 5 cents per share against net loss of $450.5 million or loss of $2.32 per share in the year-ago quarter. The improvement primarily resulted from an operating income.
In 2020, net loss was $629.5 million or loss of $3.20 per share compared with net loss of $973.2 million or loss of $5.02 per share in 2019.
Quarterly adjusted net income came in at $143.8 million or 59 cents per share compared with $106.6 million or 46 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 14 cents.
Top Line
Quarterly net sales declined 7.3% year over year to $2,131.8 million. This was primarily due to decreases in the Home Networks, and Venue and Campus Networks segments. The top line missed the consensus estimate of $2,199 million.
In 2020, sales inched up 1.1% year over year to $8,435.9 million.
Quarterly Segment Results
Sales in Broadband increased 17.3% year over year to $789.3 million, driven by growth in Network Cable and Connectivity, and Network and Cloud. The segment’s operating income was $104.1 million against operating loss of $145.8 million in the prior-year quarter.
Sales in Home totaled $571 million, down 30.7% year over year due to decline in Home Media Solutions, partly offset by growth in Broadband Connectivity Devices. Operating loss was $8.7 million compared with operating loss of $174.8 million in the year-ago quarter.
Sales in Outdoor Wireless came in at $294.7 million, up 1.1% year over year driven by growth in Macro Tower Solutions, partly offset by declines in Metro Cell Solutions. Operating income was $34.6 million compared with $27.1 million in the year-ago quarter.
Sales in Venue and Campus were $476.8 million, down 6.6% year over year. This was primarily due to declines in Indoor Copper Enterprise and RUCKUS Networks, partly offset by growth in Indoor Fiber Enterprise and Small Cell. Operating loss was $11 million compared with operating loss of $45.7 million in the year-ago quarter.
Other Details
Gross profit declined to $715 million from $736.2 million in the year-ago quarter due to lower sales. Total operating expenses in the quarter decreased to $596 million from $1,075.5 million. Operating income was $119 million against operating loss of $339.3 million in the prior-year quarter. Adjusted EBITDA was $362.2 million compared with $323.6 million a year ago.
The company has announced an initiative, CommScope NEXT. It is a multi-faceted program to drive future growth that outpaces the market, optimize business processes and unlock shareholder value.
Cash Flow & Liquidity
In 2020, CommScope generated $436.2 million of net cash from operations compared with $596.4 million in 2019.
As of Dec 31, 2020, the company had $521.9 million in cash and cash equivalents with $9,488.6 million of long-term debt. This compares with the respective tallies of $598.2 million and $9,800.4 million a year ago.
Zacks Rank & Stocks to Consider
CommScope currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Aviat Networks (AVNW - Free Report) , Plantronics and United States Cellular (USM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.
Plantronics delivered a trailing four-quarter earnings surprise of 560.4%, on average.
U.S. Cellular delivered a trailing four-quarter earnings surprise of 231.1%, on average.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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CommScope Holding Company, Inc. (COMM - Free Report) reported mixed fourth-quarter 2020 results, wherein the top line missed the Zacks Consensus Estimate but the bottom line beat the same.
The Hickory, NC-based network connectivity solutions provider’s share price fell 12.6% on Feb 17, closing the trading session at $13.83.
Bottom Line
On a GAAP basis, net income in the December quarter was $9.6 million or 5 cents per share against net loss of $450.5 million or loss of $2.32 per share in the year-ago quarter. The improvement primarily resulted from an operating income.
In 2020, net loss was $629.5 million or loss of $3.20 per share compared with net loss of $973.2 million or loss of $5.02 per share in 2019.
Quarterly adjusted net income came in at $143.8 million or 59 cents per share compared with $106.6 million or 46 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 14 cents.
Top Line
Quarterly net sales declined 7.3% year over year to $2,131.8 million. This was primarily due to decreases in the Home Networks, and Venue and Campus Networks segments. The top line missed the consensus estimate of $2,199 million.
In 2020, sales inched up 1.1% year over year to $8,435.9 million.
Quarterly Segment Results
Sales in Broadband increased 17.3% year over year to $789.3 million, driven by growth in Network Cable and Connectivity, and Network and Cloud. The segment’s operating income was $104.1 million against operating loss of $145.8 million in the prior-year quarter.
Sales in Home totaled $571 million, down 30.7% year over year due to decline in Home Media Solutions, partly offset by growth in Broadband Connectivity Devices. Operating loss was $8.7 million compared with operating loss of $174.8 million in the year-ago quarter.
Sales in Outdoor Wireless came in at $294.7 million, up 1.1% year over year driven by growth in Macro Tower Solutions, partly offset by declines in Metro Cell Solutions. Operating income was $34.6 million compared with $27.1 million in the year-ago quarter.
Sales in Venue and Campus were $476.8 million, down 6.6% year over year. This was primarily due to declines in Indoor Copper Enterprise and RUCKUS Networks, partly offset by growth in Indoor Fiber Enterprise and Small Cell. Operating loss was $11 million compared with operating loss of $45.7 million in the year-ago quarter.
Other Details
Gross profit declined to $715 million from $736.2 million in the year-ago quarter due to lower sales. Total operating expenses in the quarter decreased to $596 million from $1,075.5 million. Operating income was $119 million against operating loss of $339.3 million in the prior-year quarter. Adjusted EBITDA was $362.2 million compared with $323.6 million a year ago.
The company has announced an initiative, CommScope NEXT. It is a multi-faceted program to drive future growth that outpaces the market, optimize business processes and unlock shareholder value.
Cash Flow & Liquidity
In 2020, CommScope generated $436.2 million of net cash from operations compared with $596.4 million in 2019.
As of Dec 31, 2020, the company had $521.9 million in cash and cash equivalents with $9,488.6 million of long-term debt. This compares with the respective tallies of $598.2 million and $9,800.4 million a year ago.
Zacks Rank & Stocks to Consider
CommScope currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Aviat Networks (AVNW - Free Report) , Plantronics and United States Cellular (USM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.
Plantronics delivered a trailing four-quarter earnings surprise of 560.4%, on average.
U.S. Cellular delivered a trailing four-quarter earnings surprise of 231.1%, on average.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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