Workflow
CommScope Q1 Earnings Beat Estimates on Solid Revenue Growth
COMMCommScope(COMM) ZACKS·2025-05-01 17:05

Core Insights - CommScope Holding Company, Inc. (COMM) reported strong first-quarter 2025 results, with both revenue and net income exceeding Zacks Consensus Estimates, driven by solid demand across all segments and a focus on innovation and strategic expansion [1][2]. Financial Performance - Net income on a GAAP basis for the March quarter was 767.1million,or767.1 million, or 2.88 per share, compared to a net loss of 349.7million,oralossof349.7 million, or a loss of 1.65 per share, in the same quarter last year, supported by top-line growth, tax benefits, and portfolio optimization [2]. - Non-GAAP net income was 38.6million,or14centspershare,comparedtoanetlossof38.6 million, or 14 cents per share, compared to a net loss of 50.8 million, or 24 cents per share, in the prior-year quarter, beating the Zacks Consensus Estimate by 6 cents [3]. - Revenues for the quarter were 1.1billion,upfrom1.1 billion, up from 900.9 million a year ago, surpassing the Zacks Consensus Estimate by 5million[3].SegmentPerformance−ConnectivityandCableSolutionssegmentrevenuesincreasedby19.75 million [3]. Segment Performance - Connectivity and Cable Solutions segment revenues increased by 19.7% to 724.1 million from 604.7millionyearoveryear,drivenbystrongdemandintheEnterprisebusiness[4].−Networking,IntelligentCellular,andSecuritySolutionssegmentsalesrose50.7604.7 million year over year, driven by strong demand in the Enterprise business [4]. - Networking, Intelligent Cellular, and Security Solutions segment sales rose 50.7% year over year to 163.1 million, fueled by demand for Ruckus and Small Cell solutions [4]. - Access Network Solutions (ANS) segment revenues were 225million,upfrom225 million, up from 188 million in the prior year, reflecting a 19.7% year-over-year growth due to high demand for Access Technologies [4]. Regional Performance - Revenues in the United States increased by 30.1% year over year to 767.6million[5].−Europe,theMiddleEast,andAfricareportedrevenuesof767.6 million [5]. - Europe, the Middle East, and Africa reported revenues of 146.2 million, up 8.6% year over year [5]. - Asia Pacific revenues were 113.2million,up2.8113.2 million, up 2.8% year over year [5]. - Caribbean and Latin American revenues fell by 1.1% year over year to 43.7 million, while revenues from Canada increased by 86.9% year over year to 41.5million[5].OperationalMetrics−Grossprofitimprovedto41.5 million [5]. Operational Metrics - Gross profit improved to 468.6 million from 295.1millionintheyear−agoquarter[6].−Totaloperatingexpensesdecreasedto295.1 million in the year-ago quarter [6]. - Total operating expenses decreased to 343.3 million from 359.4millionintheprioryear[6].−Operatingincometotaled359.4 million in the prior year [6]. - Operating income totaled 134 million compared to a loss of 54.7millionintheyear−agoquarter[6].−Non−GAAPadjustedEBITDAwas54.7 million in the year-ago quarter [6]. - Non-GAAP adjusted EBITDA was 240.3 million, up from 84.1millionayearago[6].CashFlowandLiquidity−Inthefirstquarter,CommScopeutilized84.1 million a year ago [6]. Cash Flow and Liquidity - In the first quarter, CommScope utilized 186.9 million in cash for operations, compared to 177.7millionintheprioryear[7].−AsofMarch31,2025,thecompanyhad177.7 million in the prior year [7]. - As of March 31, 2025, the company had 493.3 million in cash and cash equivalents, with long-term debt of 7.24billion[7].Outlook−Forthefullyear,managementexpectsadjustedEBITDAintherangeof7.24 billion [7]. Outlook - For the full year, management expects adjusted EBITDA in the range of 995-1,045million[8].−Coreoperatingincomeisanticipatedtobebetween1,045 million [8]. - Core operating income is anticipated to be between 629-665 million [8]. - Core adjusted EBITDA (excluding the OWN segment and the DAS business unit) is forecasted to be between 1billionand1 billion and 1.05 billion [8].