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CommScope Q2 Earnings Beat Estimates on Solid Revenue Growth
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Key Takeaways
{\"0\":\"COMM\'s Q2 revenues rose to $1.38B, beating estimates by $129M on strong demand across all segments.\",\"1\":\"Non-GAAP EPS surged to $0.44 from $0.03 a year ago, surpassing consensus by $0.20.\",\"2\":\"ANS revenue climbed 65% YoY, driven by DOCSIS 4.0 product demand and higher license sales.\"}
CommScope Holding Company, Inc. (COMM - Free Report) reported impressive second-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 June quarter was $14.7 million, or 6 cents per share compared to an income of $28.2 million, or 13 cents per share, in the year-ago quarter. Despite top-line improvement, the decline was due to higher operating expenses and income tax expenses.
Non-GAAP net income was $119.4 million or 44 cents per share compared to net income of $8.6 million or 3 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 20 cents.
CommScope Holding Company, Inc. Price, Consensus and EPS Surprise
Revenues for the reported quarter were $1.38 billion, up from $1.05 billion a year ago, driven by stronger sales in all the segments. Revenues surpassed the Zacks Consensus Estimate by $129 million.
Revenues in the Connectivity and Cable Solutions segment were up 20.2% to $875.4 million from $728.4 million in the year-ago quarter, backed by the strong cloud and datacenter growth, including GenAI projects. Sales in the Ruckus segment increased 47% year over year to $190 million, driven by solid demand for Ruckus WiFi solutions and growing demand in AI native data center vertical. Sales in the Access Network Solutions (ANS) segment were $322 million compared with $195 million in the year-ago quarter. The 65% year-over-year growth was backed by high demand for DOCSIS 4.0 products and higher license sales.
Region-wise, revenues in the United States increased 48.5% year over year to $1.01 billion. Europe, the Middle East and Africa reported revenues of $144.7 million, up 5% year over year. Asia Pacific revenues were $145.7 million, up 4.8% year over year. Caribbean and Latin American revenues fell 9.4% year over year to $47.5 million, while revenues from Canada were down 9.7% year over year to $39.1 million.
Other Details of COMM Q2 Results
Gross profit improved to $591.7 million from $399 million in the year-ago quarter. Total operating expenses rose to $366 million from $316 million in the year-ago quarter. Operating income totaled $236 million compared to $91.4 million in the year-ago quarter. Non-GAAP adjusted EBITDA was $337.8 million compared with $188.7 million a year ago.
COMM's Cash Flow & Liquidity
In the second quarter, CommScope generated $77.1 million in cash from operations compared with a cash generation of $50.8 million in the prior year quarter. As of June 30, 2025, the company had $571.1 million in cash and cash equivalents with $7.24 billion in long-term debt.
COMM's Guidance Up
For the full year, management currently expects adjusted EBITDA in the range of $1.15-$1.2 billion compared to $995-$1,045 million estimated earlier. Core operating income is expected in the range of $765-805 million compared to $629-665 million expected earlier.
The company inked a definitive agreement to divest the CCS business to Amphenol for $10.5 billion. The all-cash transaction is expected to be completed by the first half of 2026.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying growth of 17.24% from the year-ago reported figure. Pinterest has a long-term earnings growth expectation of 33%. PINS delivered an average earnings surprise of 0.53% in the last four reported quarters.
Pinterest is witnessing greater engagement on the platform from its existing user base. The company’s focus on improving operational rigor and incorporating sophisticated AI models to enhance relevancy and personalization is likely to bring long-term benefits.
Motorola Solutions, Inc. (MSI - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 8. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share. Motorola delivered an earnings surprise of 7.15% in the trailing four quarters.
Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. The company intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
Keysight Technologies, Inc (KEYS - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share. Keysight delivered an earnings surprise of 8.19% in the trailing four quarters.
Keysight is gaining traction from strong industry-wide growth backed by the solid adoption of its electronic design and test solutions. Growing investment in advanced nodes and packaging, high-bandwidth memory and silicon photonics induced by high AI-performance requirements is driving growth in the semiconductor vertical.
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CommScope Q2 Earnings Beat Estimates on Solid Revenue Growth
Key Takeaways
CommScope Holding Company, Inc. (COMM - Free Report) reported impressive second-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 June quarter was $14.7 million, or 6 cents per share compared to an income of $28.2 million, or 13 cents per share, in the year-ago quarter. Despite top-line improvement, the decline was due to higher operating expenses and income tax expenses.
Non-GAAP net income was $119.4 million or 44 cents per share compared to net income of $8.6 million or 3 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 20 cents.
CommScope Holding Company, Inc. Price, Consensus and EPS Surprise
CommScope Holding Company, Inc. price-consensus-eps-surprise-chart | CommScope Holding Company, Inc. Quote
COMM's Revenues
Revenues for the reported quarter were $1.38 billion, up from $1.05 billion a year ago, driven by stronger sales in all the segments. Revenues surpassed the Zacks Consensus Estimate by $129 million.
Revenues in the Connectivity and Cable Solutions segment were up 20.2% to $875.4 million from $728.4 million in the year-ago quarter, backed by the strong cloud and datacenter growth, including GenAI projects. Sales in the Ruckus segment increased 47% year over year to $190 million, driven by solid demand for Ruckus WiFi solutions and growing demand in AI native data center vertical. Sales in the Access Network Solutions (ANS) segment were $322 million compared with $195 million in the year-ago quarter. The 65% year-over-year growth was backed by high demand for DOCSIS 4.0 products and higher license sales.
Region-wise, revenues in the United States increased 48.5% year over year to $1.01 billion. Europe, the Middle East and Africa reported revenues of $144.7 million, up 5% year over year. Asia Pacific revenues were $145.7 million, up 4.8% year over year. Caribbean and Latin American revenues fell 9.4% year over year to $47.5 million, while revenues from Canada were down 9.7% year over year to $39.1 million.
Other Details of COMM Q2 Results
Gross profit improved to $591.7 million from $399 million in the year-ago quarter. Total operating expenses rose to $366 million from $316 million in the year-ago quarter. Operating income totaled $236 million compared to $91.4 million in the year-ago quarter. Non-GAAP adjusted EBITDA was $337.8 million compared with $188.7 million a year ago.
COMM's Cash Flow & Liquidity
In the second quarter, CommScope generated $77.1 million in cash from operations compared with a cash generation of $50.8 million in the prior year quarter. As of June 30, 2025, the company had $571.1 million in cash and cash equivalents with $7.24 billion in long-term debt.
COMM's Guidance Up
For the full year, management currently expects adjusted EBITDA in the range of $1.15-$1.2 billion compared to $995-$1,045 million estimated earlier. Core operating income is expected in the range of $765-805 million compared to $629-665 million expected earlier.
The company inked a definitive agreement to divest the CCS business to Amphenol for $10.5 billion. The all-cash transaction is expected to be completed by the first half of 2026.
COMM’s Zacks Rank
CommScope currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Upcoming Releases
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying growth of 17.24% from the year-ago reported figure. Pinterest has a long-term earnings growth expectation of 33%. PINS delivered an average earnings surprise of 0.53% in the last four reported quarters.
Pinterest is witnessing greater engagement on the platform from its existing user base. The company’s focus on improving operational rigor and incorporating sophisticated AI models to enhance relevancy and personalization is likely to bring long-term benefits.
Motorola Solutions, Inc. (MSI - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 8. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share. Motorola delivered an earnings surprise of 7.15% in the trailing four quarters.
Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. The company intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
Keysight Technologies, Inc (KEYS - Free Report) is scheduled to release second-quarter 2025 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share. Keysight delivered an earnings surprise of 8.19% in the trailing four quarters.
Keysight is gaining traction from strong industry-wide growth backed by the solid adoption of its electronic design and test solutions. Growing investment in advanced nodes and packaging, high-bandwidth memory and silicon photonics induced by high AI-performance requirements is driving growth in the semiconductor vertical.