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CommScope Holding Company, Inc. COMM is scheduled to report third-quarter 2025 earnings on Oct. 30, 2025. The Zacks Consensus Estimate for revenues and earnings is pegged at $1.42 billion and 37 cents per share, respectively. Over the past 60 days, earnings estimates for COMM for 2025 have decreased 0.77% to $1.29 per share, and for 2026, they have decreased 1.22% to $1.62.
The chip manufacturer delivered a four-quarter earnings surprise of 98.3%, on average, beating estimates on each occasion. In the last reported quarter, the company pulled off an earnings surprise of 83.33%.
Our proven model does not conclusively predict an earnings beat for CommScope for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CommScope currently has an ESP of 0.00% with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
During the quarter, CommScope announced that it has achieved record-breaking downstream speeds in a DOCSIS 4.0 network. During the test, a staggering 16.25 Gbps downstream speed across two load-balanced DOCSIS 4.0 modems was achieved, while a single DOCSIS 4.0 modem delivered 9.4+ Gbps downstream speed.
To ensure symmetrical multi-gigabit speeds and network reliability capabilities, Comcast has joined forces with CommScope for DOCSIS 4.0 network upgrades. This is expected to have a favorable impact on upcoming earnings.
In the quarter under review, CommScope inked a definitive agreement with Amphenol Corporation to divest its Connectivity and Cable Solutions Segment. The company will use the net proceeds to pay off debt and pay dividends to shareholders. The divestiture will significantly improve liquidity, optimize the portfolio and drive innovation in the ANS and RUCKUS segments.
Per the Zacks Consensus Estimate, net sales from the Connectivity and Cable Solutions segment are projected at $966.66 million. Net sales from Ruckus are projected at $178.22 million. Net sales from the ANS segment $291.10 million.
Over the past year, CommScope has surged 139.4% compared with the industry’s growth of 81.7%. It has also outperformed its competitors like Corning Incorporated GLW and Harmonic Inc. HLIT. Corning has increased 90.2%, while Harmonic has declined 29% during this period.
From a valuation standpoint, CommScope appears to be relatively cheaper compared to the industry and below its mean. Going by the price/sales ratio, the company shares currently trade at 0.6 forward sales, lower than 0.9 for the industry but higher than the stock’s mean of 0.26.
COMM is benefiting from healthy traction in the ANS segment. Growing usage of high data-intensive use cases such as cloud gaming, video conferencing and remote work is driving demand for high-capacity networks. Enterprises are rushing to upgrade their infrastructure from legacy DOCSIS 3.1 to advanced DOCSIS 4. CommScope is benefiting from this DOCSIS upgrade lifecycle. Harmonic is also benefiting from the growing adoption of DOCSIS 4.0 across industries. Companies like Comcast and Mediacom are collaborating with HLIT for the DOCSIS 4.0 rollout. HLIT’s growing traction in this vertical can pose a threat to CommScope’s competitive edge.
Demand from the CCS segment also remains strong on the back of a strong cloud and datacenter growth, including GenAI projects. Solid demand for Ruckus WiFi solutions is also driving growth. The company is facing stiff competition from major industry leaders such as Corning, Cisco and Amphenol in the communication infrastructure domain. Corning’s optical connectivity products are gaining solid market traction in the data center vertical.
CommScope’s broad customer base and comprehensive portfolio offerings are expected to drive momentum in the upcoming quarters. However, growing geopolitical tension between the United States and China and macroeconomic challenges remain a concern.
With a Zacks Rank #3, COMM appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. Declining estimate revision highlights bearish sentiment on the stock's growth potential. Fluctuating spending from cable operators amid macro headwinds can impact its prospects.
However, one quarter’s result does not justify the company’s long-term growth prospects; existing investors should hold on to the stock. Efforts to optimize the portfolio with strategic divestiture, a strong focus on innovation, and a broad customer base are major tailwinds. It is set to benefit from growing demand in the AI data center market.
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This article originally published on Zacks Investment Research (zacks.com).
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