CommScope Q1 Earnings Beat Estimates on Solid Revenue Growth

CommScope Holding Company, Inc. COMM reported impressive first-quarter 2025 results, wherein both bottom and top lines surpassed the respective Zacks Consensus Estimate. The company’s revenues increased year over year, driven by solid demand across all segments. Management’s strong focus on innovations, strategic expansions and core business also drove the top line.

Net Income of COMM

On a GAAP basis, net income in the March quarter was $767.1 million, or $2.88 per share against a net loss of $349.7 million, or a loss of $1.65 per share, in the year-ago quarter. The improvement was backed by solid top-line expansion, income tax benefit, and portfolio optimization efforts.

Non-GAAP net income was $38.6 million or 14 cents per share against a net loss of $50.8 million or 24 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 6 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

COMM's Revenues

Revenues for the reported quarter were $1.1 billion, up from $900.9 million a year ago, driven by stronger sales in all the segments. Revenues surpassed the Zacks Consensus Estimate by $5 million.

Revenues in the Connectivity and Cable Solutions segment were up 19.7% to $724.1 million from $604.7 million in the year-ago quarter, backed by the solid demand in the Enterprise business. Sales in the Networking, Intelligent Cellular and Security Solutions segment, increased 50.7% year over year to $163.1 million, driven by solid demand for Ruckus and Small Cell solutions. Sales in the Access Network Solutions (ANS) segment were $225 million compared with $188 million in the year-ago quarter. The 19.7% year-over-year growth was backed by high demand for Access Technologies.

Region-wise, revenues in the United States increased 30.1% year over year to $767.6 million. Europe, the Middle East and Africa reported revenues of $146.2 million, up 8.6% year over year. Asia Pacific revenues were $113.2 million, up 2.8% year over year. Caribbean and Latin American revenues fell 1.1% year over year to $43.7 million, while revenues from Canada were up 86.9% year over year to $41.5 million.

Other Details of COMM Q1 Results

Gross profit improved to $468.6 million from $295.1 million in the year-ago quarter. Total operating expenses fell to $343.3 million from $359.4 million in the year-ago quarter. Operating income totaled $134 million against a loss of $54.7 million in the year-ago quarter. Non-GAAP adjusted EBITDA was $240.3 million compared with $84.1 million a year ago.

COMM's Cash Flow & Liquidity

In the first quarter, CommScope utilized $186.9 million cash in operations compared with a cash utilization of $177.7 million in the prior year quarter. As of Mar. 31, 2025, the company had $493.3 million in cash and cash equivalents with $7.24 billion in long-term debt.

COMM's Outlook

For the full year, management expects adjusted EBITDA in the range of $995-$1,045 million. Core operating income is expected in the range of $629-665 million. Core adjusted EBITDA (excluding the OWN segment and the DAS business unit) is forecasted to be between $1 billion and 1.05 billion.

COMM’s Zacks Rank & Stocks to Consider

CommScope currently carries a Zacks Rank #3 (Hold).

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.

Ubiquiti Inc. UI carries a Zacks Rank #2 at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. In the trailing four quarters, Ubiquiti delivered an earnings surprise of 7.48%.

Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving market changes, helps it overcome challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.

Ericsson ERIC carries a Zacks Rank #2 at present. Ericsson is well-positioned to cash in on the market momentum with its competitive 5G product portfolio. The company continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. In the last reported quarter, Ericsson delivered an earnings surprise of 33.33%.

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