We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CommScope (COMM) Beats on Q3 Earnings Despite Lower Revenues
Read MoreHide Full Article
Despite the coronavirus-induced adversities, CommScope Holding Company, Inc. (COMM - Free Report) reported relatively modest third-quarter 2020 results, with the top and the bottom lines beating the respective Zacks Consensus Estimate.
Net Loss
On a GAAP basis, net loss in the September quarter was $130.4 million or loss of 66 cents per share compared with net loss of $170.3 million or loss of 88 cents per share in the year-ago quarter. The narrower loss despite top-line contraction was primarily attributable to lower cost of sales.
Adjusted net income came in at $123.1 million or 51 cents per share compared with $126.9 million or 55 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents for an earnings surprise of 30.8%.
CommScope Holding Company, Inc. Price, Consensus and EPS Surprise
Quarterly net sales fell to $2,168.1 million from $2,380.2 million due to reduced spending from cable operators and wireless carriers, mainly in the Home Networks and Outdoor Wireless Networks segments. Nevertheless, the top line surpassed the consensus estimate of $2,128 million.
Segment Results
Sales in Broadband increased 18.1% to $820.9 million with improved performance across all regions due to higher work-from-home trend and growth in Network Cable & Connectivity and Network & Cloud. The segment’s operating income was $76.7 million against an operating loss of $13 million in the prior-year quarter.
Sales in Home totaled $563.6 million, down 31.8% year over year due to declines in Home Media Solutions. Operating loss was $3.7 million against operating income of $3.8 million in the year-ago quarter.
Sales in Outdoor Wireless came in at $271.8 million, down 18.7% year over year due to declines in Macro Tower Solutions and Metro Cell Solutions. Operating income was $26 million against operating loss of $2.2 million in the year-ago quarter.
Sales in Venue and Campus were $511.8 million, down 2.4% year over year owing to decline in Indoor Copper Enterprise, partially offset by growth in Distributed Coverage and Capacity Solutions and RUCKUS Networks business. Operating loss was $32.2 million compared with loss of $100.5 million in the year-ago quarter.
Other Details
Overall, gross profit improved to $735.5 million from $609.9 million in the year-ago quarter due to lower cost of sales. Total operating expenses were up to $679.7 million from $660.7 million in the prior-year quarter. Operating income was $55.8 million against operating loss of $50.8 million in the prior-year quarter. Adjusted EBITDA was $341.9 million compared with $369.8 million in the year-ago quarter.
Cash Flow & Liquidity
In the first nine months of 2020, CommScope generated $338.5 million of net cash from operating activities compared with $260.4 million in the prior-year period. As of Sep 30, 2020, the company had $582.8 million in cash and cash equivalents with $9,589.3 million of long-term debt. The company had no outstanding debt under its revolving credit facility and had a borrowing capacity of $733.6 million.
Viavi delivered a positive earnings surprise of 17.5%, on average, in the trailing four quarters.
Altice has a VGM Score of A and has gained 25.8% in the past six months.
Knowles has a long-term earnings growth expectation of 10%. It delivered a positive earnings surprise of 12.5%, on average, in the trailing four quarters.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
CommScope (COMM) Beats on Q3 Earnings Despite Lower Revenues
Despite the coronavirus-induced adversities, CommScope Holding Company, Inc. (COMM - Free Report) reported relatively modest third-quarter 2020 results, with the top and the bottom lines beating the respective Zacks Consensus Estimate.
Net Loss
On a GAAP basis, net loss in the September quarter was $130.4 million or loss of 66 cents per share compared with net loss of $170.3 million or loss of 88 cents per share in the year-ago quarter. The narrower loss despite top-line contraction was primarily attributable to lower cost of sales.
Adjusted net income came in at $123.1 million or 51 cents per share compared with $126.9 million or 55 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents for an earnings surprise of 30.8%.
CommScope Holding Company, Inc. Price, Consensus and EPS Surprise
CommScope Holding Company, Inc. price-consensus-eps-surprise-chart | CommScope Holding Company, Inc. Quote
Revenues
Quarterly net sales fell to $2,168.1 million from $2,380.2 million due to reduced spending from cable operators and wireless carriers, mainly in the Home Networks and Outdoor Wireless Networks segments. Nevertheless, the top line surpassed the consensus estimate of $2,128 million.
Segment Results
Sales in Broadband increased 18.1% to $820.9 million with improved performance across all regions due to higher work-from-home trend and growth in Network Cable & Connectivity and Network & Cloud. The segment’s operating income was $76.7 million against an operating loss of $13 million in the prior-year quarter.
Sales in Home totaled $563.6 million, down 31.8% year over year due to declines in Home Media Solutions. Operating loss was $3.7 million against operating income of $3.8 million in the year-ago quarter.
Sales in Outdoor Wireless came in at $271.8 million, down 18.7% year over year due to declines in Macro Tower Solutions and Metro Cell Solutions. Operating income was $26 million against operating loss of $2.2 million in the year-ago quarter.
Sales in Venue and Campus were $511.8 million, down 2.4% year over year owing to decline in Indoor Copper Enterprise, partially offset by growth in Distributed Coverage and Capacity Solutions and RUCKUS Networks business. Operating loss was $32.2 million compared with loss of $100.5 million in the year-ago quarter.
Other Details
Overall, gross profit improved to $735.5 million from $609.9 million in the year-ago quarter due to lower cost of sales. Total operating expenses were up to $679.7 million from $660.7 million in the prior-year quarter. Operating income was $55.8 million against operating loss of $50.8 million in the prior-year quarter. Adjusted EBITDA was $341.9 million compared with $369.8 million in the year-ago quarter.
Cash Flow & Liquidity
In the first nine months of 2020, CommScope generated $338.5 million of net cash from operating activities compared with $260.4 million in the prior-year period. As of Sep 30, 2020, the company had $582.8 million in cash and cash equivalents with $9,589.3 million of long-term debt. The company had no outstanding debt under its revolving credit facility and had a borrowing capacity of $733.6 million.
Zacks Rank & Stocks to Consider
CommScope currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader industry are Viavi Solutions Inc. (VIAV - Free Report) , Altice USA, Inc. (ATUS - Free Report) and Knowles Corporation (KN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viavi delivered a positive earnings surprise of 17.5%, on average, in the trailing four quarters.
Altice has a VGM Score of A and has gained 25.8% in the past six months.
Knowles has a long-term earnings growth expectation of 10%. It delivered a positive earnings surprise of 12.5%, on average, in the trailing four quarters.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>