CommScope Holding Company, Inc. (COMM - Free Report) has made additions to its portfolio of access points supporting Wi-Fi 6 technology. The Hickory, NC-based wireless and broadband network technology company aims to bring the benefits of higher data rates, enhanced capacity and power efficiency in environments with several connected devices.
Effective Jan 1, 2020, the company transitioned to a new segment reporting structure that is expected to help better capture the strategic value from the acquisition of ARRIS and Ruckus Networks. CommScope currently operates in four segments — Venue and Campus Networks, Broadband Networks, Outdoor Wireless Networks, and Home Networks.
Complementing the RUCKUS R750 that was introduced last year as the world’s first Wi-Fi CERTIFIED 6 access point (AP), CommScope has launched the R850, R650 and R550 indoor APs and T750 and T750SE outdoor APs. These products are optimized for a highly-dense environment such as educational campuses and hotels.
The RUCKUS portfolio of access points now includes R850, R750, R650, R550, T750 and T750SE. The R650 and T750 were shipped in the first quarter of 2020, while the R550 and R850 are planned for dispatch in the ongoing quarter. The T750SE will be commercially available in the third quarter of 2020.
These new APs deliver comprehensive network intelligence powered by AI and ML through RUCKUS Analytics. The technologies found in RUCKUS APs like BeamFlex and Ultra-High-Density Technology Suite enable customers to meet the requirements of their users. The Wi-Fi 6 APs with patented and unique technologies offer premium enterprise solutions to meet growing demand for connectivity.
CommScope is well positioned to capitalize on long-term industry growth trends, including network convergence, fiber and mobility everywhere, IoT, demand for additional bandwidth and low latency. It continues to focus on cutting-edge technology and an efficient supply chain.
With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, the company is actively developing solutions designed to support wireline and wireless network convergence, which is crucial for the success of 5G.
Due to uncertainties related to COVID-19, CommScope has withdrawn its outlook for 2020. However, the company expects second-quarter sales and adjusted EBITDA to improve modestly from first-quarter 2020 levels.
Shares of CommScope have lost 49.1% compared with 9.9% decline of the industry in the past year.
The company has a trailing four-quarter positive earnings surprise of 30.3%, on average. It has a long-term earnings growth expectation of 2.7% compared with the industry’s 8.1%.
CommScope currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Turtle Beach Corporation (HEAR - Free Report) , Plantronics, Inc. (PLT - Free Report) and Ooma, Inc. (OOMA - Free Report) . While Turtle Beach sports a Zacks Rank #1 (Strong Buy), Plantronics and Ooma carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.
Plantronics has a trailing four-quarter positive earnings surprise of 27.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Ooma has a trailing four-quarter positive earnings surprise of 124%, on average.
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