CommScope (COMM) Reports Mixed Preliminary Q2 Results

Core Insights - CommScope Holding Company, Inc. (COMM) has released preliminary second-quarter 2024 results, indicating a challenging macroeconomic environment [1] - The company is set to officially announce its second-quarter results on August 8, 2024 [1] Financial Performance - For the June quarter, GAAP income from continuing operations is anticipated to be approximately $75 million [2] - Non-GAAP adjusted EBITDA is expected to reach $302 million, driven by the CommScope NEXT initiative and reduced fixed costs [2] - Second-quarter 2024 net sales are projected to be $1.39 billion, with core net sales of $1.05 billion, supported by strong performance in the Connectivity and Cable Solutions (CCS) and Outdoor Wireless Networks (OWN) segments [9] - Core non-GAAP adjusted EBITDA is estimated at $201 million, with non-GAAP adjusted free cash flow projected to be $69 million [10] - The company expects cash and cash equivalents of $346 million in the second quarter [10] Strategic Developments - CommScope has entered into a definitive agreement to sell its OWN segment and DAS business unit to Amphenol Corporation for $2.1 billion in cash [3] - The company anticipates strong performance in the second quarter, particularly in the CCS segment, with notable strength in its datacenter and cloud business [3] Market Performance - Over the past year, CommScope's shares have declined by 48.7%, compared to a 40.6% decline in the industry [4]