Telecom equipment firm CommScope's Q2 sales up 31.7%
Overview
CommScope Q2 net sales rise 31.7% yr/yr to $1.39 bln
Adjusted EBITDA for Q2 beats estimates, rising 79% to $337.8 mln
Adjusted EPS of $0.44 beats analyst expectations, per LSEG data
Co to sell CCS segment to Amphenol for $10.5 bln in cash
Outlook
CommScope raises 2025 adjusted EBITDA guidance to $1.15-$1.20 bln
Company expects CCS segment sale to close in H1 2026
Proceeds from CCS sale to repay debt, redeem equity, and pay dividends
ANS and RUCKUS positioned for growth post-CCS sale
Result Drivers
ALL SEGMENTS - Net sales increased 31.7% year-over-year, supported by stronger-than-expected results across all segments
RUCKUS DEMAND - RUCKUS segment net sales rose 46.5% due to increased demand and improved channel inventory
ANS GROWTH - ANS segment net sales increased 65% driven by Access Technologies and Broadband Networks Solutions
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | $1.39 bln | ||
Q2 Adjusted EPS | Beat | $0.44 | $0.23 (8 Analysts) |
Q2 EPS | $0.07 | ||
Q2 Net Income | $31.80 mln | ||
Q2 Adjusted EBITDA | Beat | $337.80 mln | $267.20 mln (6 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy."
Wall Street's median 12-month price target for CommScope Holding Company Inc is $4.00, about 94.7% below its August 1 closing price of $7.79
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 4 three months ago
Press Release:
