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CLAREMONT, NC - On Monday, CommScope Holding Company, Inc. (NASDAQ:COMM) reported second quarter results that significantly exceeded analyst expectations, driven by stronger-than-expected performance across all business segments.
The company’s saw its shares surge 41.34% in pre-market trading after the quarterly release.
The network connectivity solutions provider reported second quarter adjusted earnings of $0.44 per share, handily beating the analyst consensus of $0.23. Revenue jumped 31.7% YoY to $1.39 billion, well above analyst estimates of $1.25 billion and marking substantial growth from $1.05 billion in the same quarter last year.
"We are extremely pleased with our outstanding results in the second quarter," said Chuck Treadway, President and Chief Executive Officer. "CommScope net sales of $1.39 billion increased 31.7% from the prior year. Net sales were positively supported by stronger-than-expected results across all segments."
The company’s adjusted EBITDA surged 79% YoY to $337.8 million, representing 24.3% of revenues compared to 17.9% in the prior year. This marked the fifth consecutive quarter of improvement and a 640 basis point gain in margin year-over-year.
All three business segments showed strong growth, with CCS (Connectivity and Cable Solutions) revenue up 20.2% to $875.4 million, RUCKUS revenue increasing 46.5% to $190.2 million, and ANS (Access Network Solutions) revenue soaring 65% to $322.5 million.
Following the strong performance, CommScope raised its 2025 adjusted EBITDA guidance to $1.15-$1.20 billion.
The company also highlighted its previously announced agreement to sell its CCS segment to Amphenol (NYSE:APH) for approximately $10.5 billion in cash, with the transaction expected to close in the first half of 2026.
Kyle Lorentzen, Chief Financial Officer, noted that the company plans to use proceeds from the sale to repay all existing debt, redeem preferred equity, and distribute excess cash to shareholders as a dividend within 60-90 days after closing.
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