CommScope, Inc. (COMM) announced that it has inked a licensing agreement with AFL, a leader in fiber optic solutions to manufacture CommScope's fiber-to-the-home hardened connectivity solutions. This partnership represents a significant step to support the 'Buy America, Build America' initiatives and ensure eligibility for funding under the Broadband Equity Access Deployment program. Along with bringing Prodigy solutions to its customers, AFL's facilities will also help in meeting the growing global demand ...

CommScope Holding Company, Inc. (COMM) recently collaborated with Nokia Corporation (NOK) to develop a cutting-edge AI-driven solution for deploying seamless in-building and campus-wide connectivity to cater to the needs of the former's diverse industry verticals. COMM Integrates Wi-Fi With Fiber Solution Per the partnership, CommScope will combine RUCKUS Network's industry-leading enterprise Wi-Fi and switching solutions with Nokia's best-in-class fiber-based Optical LAN to create an integrated infrastruct ...

Press Release Nokia and RUCKUS Networks collaborate to deliver integrated fiber and Wi-Fi in-building/campus connectivity The joint solution efficiently addresses in-building and campus connectivity needs across key industries, including real estate/MDUs, hospitality, healthcare, and education. The integrated fiber and Wi-Fi solution can be deployed by Telco, Cable, Managed, and LAN service providers, accelerating time-to-market and reducing operational costs. Partnership combines the expertise of Nokia and ...

CommScope Holding Company, Inc. (COMM) recently expanded its ValuLine HX antenna portfolio with the introduction of the HX6-611-6WH/B antenna. This antenna is set to revolutionize the way network operators scale their operations by providing a high-capacity microwave backhaul solution that meets the demands of future networks. By operating seamlessly in both the 6 GHz and 11 GHz bands, the HX6-611-6WH/B ensures reliable, long-haul connectivity, making it a critical asset for mobile network operators (MNOs) ...

CommScope (COMM) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual in ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ...

After reaching an important support level, CommScope Holding Company, Inc. (COMM) could be a good stock pick pick from a technical perspective. COMM recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with th ...

CommScope Holding Company, Inc. (COMM) reported soft second-quarter 2024 results, wherein both the top and bottom lines missed the respective Zacks Consensus Estimate. Lower capital spending from customers, inventory adjustments, macroeconomic challenges and weak demand in several verticals led to top-line contraction year over year. Net Income On a GAAP basis, net income in the second quarter was $28.2 million or 13 cents per share against a net loss of $115.7 million or a loss of 55 cents per share in the ...

Financial Data and Key Metrics Changes - CommScope reported net sales of $1.387 billion for Q2 2024, a decrease of 13% year-over-year, driven by declines in ANS and NICS segments [15] - Adjusted EBITDA increased by 20% to $302 million, with adjusted EPS rising 100% to $0.34 per share [15] - Core CommScope, excluding OWN and DAS businesses, had net sales of $1.054 billion, down 17% year-over-year, with core adjusted EBITDA of $201 million, essentially flat compared to the prior year [15][20] - Adjusted EBITDA as a percentage of sales improved from 15.9% to 19.1% [23] Business Line Data and Key Metrics Changes - CCS segment net sales increased by 5% to $728 million, with adjusted EBITDA rising 107% to $171 million, driven by cost reductions and favorable product mix [17] - Core NICS net sales decreased by 44% to $132 million, with adjusted EBITDA of negative $3 million, impacted by lower revenue and inventory write-offs [18] - ANS segment net sales decreased by 43% to $193 million, with adjusted EBITDA down 47% to $33 million due to customer inventory adjustments and upgrade delays [19] Market Data and Key Metrics Changes - The building and data center business within CCS is experiencing strong demand, particularly from hyperscale and cloud sectors, driven by increased bandwidth needs due to GenAI [6] - Broadband demand remains low compared to 2021 and 2022, with uncertainty regarding the timing of recovery and federal funding programs [8] - The BEAD program is now expected to be pushed to the second half of 2025, impacting broadband demand recovery [8] Company Strategy and Development Direction - CommScope is divesting its OWN and DAS businesses to Amphenol, expected to close in the first half of 2025, to optimize capital structure and reduce debt [5][20] - The company is focusing on enhancing profitability through the CommScope NEXT program, which has already implemented $100 million in cost savings [30] - Future growth is anticipated in the CCS segment, particularly in data centers, while the company remains cautious about the timing and magnitude of recovery in NICS and ANS segments [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the CCS segment's recovery driven by data center growth, while remaining cautious about the uncertain demand environment in other segments [24] - The company expects small sequential improvements in core revenue and adjusted EBITDA in the third quarter, with full-year core adjusted EBITDA guidance between $700 million to $800 million [22][23] - Management highlighted the importance of controlling costs and supporting customers during challenging market conditions [23] Other Important Information - CommScope generated cash flow from operations of $51 million and adjusted free cash flow of $69 million in Q2 2024 [21] - The company ended the quarter with $346 million in global cash and total available cash and liquidity of approximately $880 million [21] - The acquisition of Casa Systems' cable business assets for $45 million is expected to provide cash flow from their legacy customer base [20] Q&A Session Summary Question: Opportunities for share gains in the data center business - Management believes they are well positioned for growth in the data center and cloud GenAI projects, with strong growth seen in the first half [25] Question: Impact of CommScope NEXT program on EBITDA performance - The majority of the $100 million cost savings from the CommScope NEXT program has been implemented, contributing to improved profitability [30] Question: Clarification on CCS revenue mix - Approximately 15% of CCS business revenue comes from the data center market, including hyperscale [36] Question: Inventory digestion and macro headwinds in RUCKUS - ANS and RUCKUS segments still have inventory buildup, with expectations for improvement in the second half of 2024 [42] Question: Timing and revenue opportunity for unified FDX ESD platform - The unified DOCSIS product is in development, with positive feedback from major players in the amplifier space [44]

For the quarter ended June 2024, CommScope (COMM) reported revenue of $1.39 billion, down 27.7% over the same period last year. EPS came in at $0.34, compared to $0.19 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.39 billion, representing a surprise of -0.24%. The company delivered an EPS surprise of -8.11%, with the consensus EPS estimate being $0.37. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...