We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Tops Q3 Earnings Estimates on Solid Top-Line Improvement
Read MoreHide Full Article
Key Takeaways
COMM's Q3 revenues rose more than 50% year over year to $1.63 billion, topping estimates.
Strong growth in CCS, ANS, and Ruckus segments drove solid top-line performance.
Operating income tripled to $300.9 million, with adjusted EBITDA nearly doubling to $402.5 million.
CommScope Holding Company, Inc. (COMM - Free Report) reported strong third-quarter 2025 results, wherein both bottom and top lines surpassed the respective Zacks Consensus Estimate. Quarterly revenues increased more than 50% year over year, driven by solid demand across all segments. Management’s strong focus on innovations, strategic expansions and core business also drove the top line.
Net Income
On a GAAP basis, net income from continuing operations in the September quarter was $106.9 million or 38 cents per share against a net loss of $96.7 million or a loss of 52 cents per share a year ago, primarily driven by solid revenues.
Non-GAAP net income in the reported quarter was $172 million or 62 cents per share against an adjusted net loss of $13.2 million or a loss of 6 cents per share in the prior year. The bottom line beat the Zacks Consensus Estimate of 37 cents.
CommScope Holding Company, Inc. Price, Consensus and EPS Surprise
Consolidated revenues improved to $1.63 billion from $1.08 billion a year ago, driven by stronger sales in all the segments. Revenues surpassed the consensus estimate of $1.42 billion.
Revenues in the Connectivity and Cable Solutions (CCS) segment were up 51.1% to $1.11 billion, backed by the strong cloud and datacenter growth, including GenAI projects. Sales in the Ruckus segment increased 15.2% year over year to $178.5 million, driven by solid demand for Ruckus WiFi solutions and an improved channel inventory position. Sales in the Access Network Solutions (ANS) segment were $337.8 million compared with $190.6 million in the year-ago quarter. The 77.2% year-over-year growth was driven by higher sales of Access technologies and broadband networks solutions.
Region-wise, revenues in the United States increased 70.7% year over year to $1.22 billion. Europe, the Middle East and Africa reported revenues of $167.6 million, up 5.2% year over year. Asia Pacific revenues were $162.8 million, up 28.6% year over year. Caribbean and Latin American revenues fell 4.8% year over year to $45.2 million, while revenues from Canada were down 0.3% year over year to $34.1 million.
Other Details
Gross profit improved to $667.8 million from $435.1 million in the year-ago quarter due to higher revenues. Total operating expenses rose to $375.5 million from $337.3 million owing to higher SG&A and R&D costs. Nevertheless, operating income increased to $300.9 million from $102.2 million due to top-line growth. Non-GAAP adjusted EBITDA nearly doubled to $402.5 million from $204.2 million a year ago.
Cash Flow & Liquidity
In the third quarter, CommScope generated $151.4 million cash from operations compared with $122.2 million in the prior year. As of Sept. 30, 2025, the company had $705.3 million in cash and cash equivalents with $7.25 billion long-term debt. Free cash flow for the reported quarter was $135.0 million. As of Sept. 30, 2025, the company had no outstanding debt under its revolving credit facility and had a borrowing capacity of $576.5 million.
For the full year, management currently expects adjusted EBITDA in the range of $1.3-$1.35 billion compared to $1.15-$1.2 billion estimated earlier.
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CommScope Tops Q3 Earnings Estimates on Solid Top-Line Improvement
Key Takeaways
CommScope Holding Company, Inc. (COMM - Free Report) reported strong third-quarter 2025 results, wherein both bottom and top lines surpassed the respective Zacks Consensus Estimate. Quarterly revenues increased more than 50% year over year, driven by solid demand across all segments. Management’s strong focus on innovations, strategic expansions and core business also drove the top line.
Net Income
On a GAAP basis, net income from continuing operations in the September quarter was $106.9 million or 38 cents per share against a net loss of $96.7 million or a loss of 52 cents per share a year ago, primarily driven by solid revenues.
Non-GAAP net income in the reported quarter was $172 million or 62 cents per share against an adjusted net loss of $13.2 million or a loss of 6 cents per share in the prior year. The bottom line beat the Zacks Consensus Estimate of 37 cents.
CommScope Holding Company, Inc. Price, Consensus and EPS Surprise
CommScope Holding Company, Inc. price-consensus-eps-surprise-chart | CommScope Holding Company, Inc. Quote
Revenues
Consolidated revenues improved to $1.63 billion from $1.08 billion a year ago, driven by stronger sales in all the segments. Revenues surpassed the consensus estimate of $1.42 billion.
Revenues in the Connectivity and Cable Solutions (CCS) segment were up 51.1% to $1.11 billion, backed by the strong cloud and datacenter growth, including GenAI projects. Sales in the Ruckus segment increased 15.2% year over year to $178.5 million, driven by solid demand for Ruckus WiFi solutions and an improved channel inventory position. Sales in the Access Network Solutions (ANS) segment were $337.8 million compared with $190.6 million in the year-ago quarter. The 77.2% year-over-year growth was driven by higher sales of Access technologies and broadband networks solutions.
Region-wise, revenues in the United States increased 70.7% year over year to $1.22 billion. Europe, the Middle East and Africa reported revenues of $167.6 million, up 5.2% year over year. Asia Pacific revenues were $162.8 million, up 28.6% year over year. Caribbean and Latin American revenues fell 4.8% year over year to $45.2 million, while revenues from Canada were down 0.3% year over year to $34.1 million.
Other Details
Gross profit improved to $667.8 million from $435.1 million in the year-ago quarter due to higher revenues. Total operating expenses rose to $375.5 million from $337.3 million owing to higher SG&A and R&D costs. Nevertheless, operating income increased to $300.9 million from $102.2 million due to top-line growth. Non-GAAP adjusted EBITDA nearly doubled to $402.5 million from $204.2 million a year ago.
Cash Flow & Liquidity
In the third quarter, CommScope generated $151.4 million cash from operations compared with $122.2 million in the prior year. As of Sept. 30, 2025, the company had $705.3 million in cash and cash equivalents with $7.25 billion long-term debt. Free cash flow for the reported quarter was $135.0 million. As of Sept. 30, 2025, the company had no outstanding debt under its revolving credit facility and had a borrowing capacity of $576.5 million.
For the full year, management currently expects adjusted EBITDA in the range of $1.3-$1.35 billion compared to $1.15-$1.2 billion estimated earlier.
Zacks Rank
CommScope currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.