CommScope (NASDAQ:COMM) Releases Earnings Results, Beats Expectations 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 data on Monday. The communications equipment provider reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.20, Briefing.com reports. CommScope had a negative return on equity of 5.96% and a net margin of 16.61%. The firm had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter in the prior year, the business earned $0.34 EPS. The business's revenue for the quarter was up 31.7% compared to the same quarter last year.

CommScope Trading Down 2.1%

COMM stock traded down $0.31 during midday trading on Wednesday, reaching $14.47. 7,510,843 shares of the company's stock traded hands, compared to its average volume of 5,972,208. The stock's 50-day moving average is $7.51 and its 200 day moving average is $5.83. CommScope has a 52-week low of $2.09 and a 52-week high of $15.65. The stock has a market cap of $3.13 billion, a P/E ratio of 5.44, a PEG ratio of 0.42 and a beta of 2.38.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of COMM. AQR Capital Management LLC lifted its stake in shares of CommScope by 1,029.9% in the 1st quarter. AQR Capital Management LLC now owns 360,577 shares of the communications equipment provider's stock valued at $1,877,000 after purchasing an additional 328,664 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings 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 purchasing an additional 7,149 shares during the last quarter. NewEdge Advisors LLC boosted its holdings 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 purchasing an additional 4,669 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of 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 during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings 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 purchasing an additional 39,064 shares during the last quarter. Hedge funds and other institutional investors own 88.04% of the company's stock.

Analysts Set New Price Targets

COMM has been the subject of several research reports. Morgan Stanley upgraded shares of CommScope from an "underweight" rating to an "equal weight" rating and raised their price objective for the stock from $4.00 to $17.00 in a research report on Tuesday. Wall Street Zen lowered CommScope from a "strong-buy" rating to a "buy" rating in a research report on Tuesday, May 13th. Northland Capmk raised shares of CommScope from a "hold" rating to a "strong-buy" rating in a research note on Monday. Northland Securities set a $20.00 price target on shares of CommScope in a research report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on shares of CommScope from $6.00 to $7.50 and gave the company a "hold" rating in a report on Tuesday, June 24th. Four research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, CommScope currently has an average rating of "Moderate Buy" and a consensus price target of $13.70.

CommScope Company Profile

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.