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Will Top-Line Expansion Aid CommScope's (COMM) Q4 Earnings?
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CommScope Holding Company, Inc. (COMM - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 23, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.17%. It pulled off a trailing four-quarter earnings surprise of 24.11%, on average. The company's strategy of assisting its channel partners by creating various tools and the strong demand for its Home and Distributed Access Architecture (DAA) Module solutions are likely to have boosted the top line.
Factors at Play
In the December quarter, the company introduced the HomeSight system that external parties can use for different personalized homecare activities related to healthcare, residential care, medical trials, remote patient monitoring and community connections. During the quarter, CommScope announced that Kraydel’s Konnect, a remote monitoring platform, will deploy the HomeSight system. The system is easy to install and comes with various features such as automated source switching, an easy-to-use remote control, video calling through TV, IOS and Android mobile app for care workers, family and friends, photo sharing, video uploads and text messaging. The top-line performance of the business will probably be aided by such innovative products.
In the to-be-reported quarter, CommScope inked an agreement with Mediacom communications to support the transition of its network to a Distributed Access Architecture (DAA) based on Remote MACPHY. After completing a successful trial of CommScope's Remote PHY solution in its advanced 10G Smart Home, Mediacom intends to employ CommScope's RD2322 RxD to ensure optimal use of RF spectrum, lower latency services and a new level of capacity for its subscribers. One of the top cable operators in North America, Mediacom, believes that upgrading its optical nodes in conjunction with the market-leading DAA Module solutions from CommScope would enable a smooth transition to the next phase of network evolution. This is likely to have had a positive impact on the company’s fourth-quarter earnings.
During the fourth quarter, the company unveiled its Infrastructure Distributor Program, which aims to provide channel partners with capabilities like automated account management, on-demand news and social feeds, a premier learning management system, educational resources, and incentives for customer expansion. It will also emphasize on helping the elite partners grow their businesses through promotions and by providing them with top-tier services and benefits. The company's fourth-quarter earnings are likely going to benefit from this.
However, supply chain headwinds and rising geopolitical tension between the United States and China are expected to have affected the company's top-line performance. In addition, lower spending tendency of cable operators and wireless carriers combined with rising costs are putting pressure on earnings prospects.
The Zacks Consensus Estimate for total revenues of the company stands at $2,326 million, indicating an increase from $2,224 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 47 cents per share. It had reported earnings of 23 cents per share in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict earnings beat for CommScope for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -12.30%, with the former pegged at 41 cents and latter at 47 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CommScope Holding Company, Inc. Price and EPS Surprise
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for International Game Technology (IGT - Free Report) is +20% and sporting a Zacks Rank of 1. The company is set to report quarterly numbers on Feb 28.
The Earnings ESP for Monroe Capital CorporationMRCC is +5% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Mar 1.
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Will Top-Line Expansion Aid CommScope's (COMM) Q4 Earnings?
CommScope Holding Company, Inc. (COMM - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 23, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.17%. It pulled off a trailing four-quarter earnings surprise of 24.11%, on average. The company's strategy of assisting its channel partners by creating various tools and the strong demand for its Home and Distributed Access Architecture (DAA) Module solutions are likely to have boosted the top line.
Factors at Play
In the December quarter, the company introduced the HomeSight system that external parties can use for different personalized homecare activities related to healthcare, residential care, medical trials, remote patient monitoring and community connections. During the quarter, CommScope announced that Kraydel’s Konnect, a remote monitoring platform, will deploy the HomeSight system. The system is easy to install and comes with various features such as automated source switching, an easy-to-use remote control, video calling through TV, IOS and Android mobile app for care workers, family and friends, photo sharing, video uploads and text messaging. The top-line performance of the business will probably be aided by such innovative products.
In the to-be-reported quarter, CommScope inked an agreement with Mediacom communications to support the transition of its network to a Distributed Access Architecture (DAA) based on Remote MACPHY. After completing a successful trial of CommScope's Remote PHY solution in its advanced 10G Smart Home, Mediacom intends to employ CommScope's RD2322 RxD to ensure optimal use of RF spectrum, lower latency services and a new level of capacity for its subscribers. One of the top cable operators in North America, Mediacom, believes that upgrading its optical nodes in conjunction with the market-leading DAA Module solutions from CommScope would enable a smooth transition to the next phase of network evolution. This is likely to have had a positive impact on the company’s fourth-quarter earnings.
During the fourth quarter, the company unveiled its Infrastructure Distributor Program, which aims to provide channel partners with capabilities like automated account management, on-demand news and social feeds, a premier learning management system, educational resources, and incentives for customer expansion. It will also emphasize on helping the elite partners grow their businesses through promotions and by providing them with top-tier services and benefits. The company's fourth-quarter earnings are likely going to benefit from this.
However, supply chain headwinds and rising geopolitical tension between the United States and China are expected to have affected the company's top-line performance. In addition, lower spending tendency of cable operators and wireless carriers combined with rising costs are putting pressure on earnings prospects.
The Zacks Consensus Estimate for total revenues of the company stands at $2,326 million, indicating an increase from $2,224 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 47 cents per share. It had reported earnings of 23 cents per share in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict earnings beat for CommScope for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -12.30%, with the former pegged at 41 cents and latter at 47 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CommScope Holding Company, Inc. Price and EPS Surprise
CommScope Holding Company, Inc. price-eps-surprise | CommScope Holding Company, Inc. Quote
Zacks Rank: CommScope has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Splunk Inc. is set to release quarterly numbers on Mar 1. It has an Earnings ESP of +0.39% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for International Game Technology (IGT - Free Report) is +20% and sporting a Zacks Rank of 1. The company is set to report quarterly numbers on Feb 28.
The Earnings ESP for Monroe Capital Corporation MRCC is +5% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Mar 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.