CommScope (NASDAQ:COMM) Releases Earnings Results, Beats Estimates By $0.20 EPS

Key Points

• CommScope reported a quarterly earnings per share (EPS) of $0.44, exceeding expectations by $0.20, and a revenue of $1.39 billion, significantly surpassing analyst estimates of $1.27 billion.
• The company's stock price surged by 86.3% during trading hours following the earnings report, reaching $14.51 and marking a significant increase from the previous trading average.
• Several analysts have adjusted their ratings, with Northland Securities upgrading CommScope to an "outperform" rating and setting a price target of $12.00, while others have varied in their outlooks, resulting in a consensus rating of "Hold."

CommScope (NASDAQ:COMM - Get Free Report) posted its quarterly earnings results on Monday. The communications equipment provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.24 by $0.20, Briefing.com reports. The firm had revenue of $1.39 billion during the quarter, compared to analysts' expectations of $1.27 billion. CommScope had a negative return on equity of 6.29% and a net margin of 16.61%. The company's revenue for the quarter was up 31.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.34 EPS.

CommScope Price Performance

COMM stock traded up $0.43 during trading hours on Friday, reaching $15.42. 4,306,526 shares of the stock were exchanged, compared to its average volume of 6,026,867. The firm's 50-day moving average is $7.67 and its 200-day moving average is $5.89. The company has a market cap of $3.41 billion, a price-to-earnings ratio of 5.82, a PEG ratio of 0.42 and a beta of 2.38. CommScope has a 12 month low of $2.55 and a 12 month high of $15.65.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on COMM shares. Morgan Stanley upgraded CommScope from an "underweight" rating to an "equal weight" rating and upped their price objective for the company from $4.00 to $17.00 in a research note on Tuesday. Raymond James Financial raised CommScope from an "underperform" rating to an "outperform" rating and set a $19.00 price target on the stock in a research note on Tuesday. Northland Capmk raised CommScope from a "hold" rating to a "strong-buy" rating in a research note on Monday. Northland Securities set a $20.00 price objective on shares of CommScope in a research report on Tuesday. Finally, Wolfe Research initiated coverage on shares of CommScope in a research report on Monday, July 7th. They issued a "peer perform" rating for the company. Four equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $14.75.

Hedge Funds Weigh In On CommScope

Large investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. increased its holdings in CommScope by 244.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 9,498,510 shares of the communications equipment provider's stock worth $50,437,000 after purchasing an additional 6,743,929 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of CommScope by 8.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 520,677 shares of the communications equipment provider's stock worth $2,765,000 after buying an additional 39,064 shares during the last quarter. AQR Capital Management LLC boosted its stake in shares of CommScope by 1,029.9% during the 1st quarter. AQR Capital Management LLC now owns 360,577 shares of the communications equipment provider's stock worth $1,877,000 after buying an additional 328,664 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of CommScope by 5.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 128,503 shares of the communications equipment provider's stock worth $682,000 after buying an additional 7,149 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its stake in shares of CommScope by 7.9% during the 1st quarter. NewEdge Advisors LLC now owns 63,433 shares of the communications equipment provider's stock worth $337,000 after buying an additional 4,669 shares during the last quarter. Institutional investors own 88.04% of the company's stock.

About CommScope

CommScope Holding Company, Inc provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates through Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments.