CommScope (COMM) Reports $1.39B in Q2 2024 Sales

By Tamara Parker • Monday, July 29 15:35 • Permanent Link

Commscope Holding Company, Inc. (NASDAQ: COMM) has announced its preliminary second quarter 2024 results, reporting consolidated net sales of $1.39 billion, with core net sales amounting to $1.05 billion. The company's GAAP income from continuing operations for the quarter is $75 million. Additionally, Commscope reported consolidated non-GAAP adjusted EBITDA of $302 million and core non-GAAP adjusted EBITDA of $201 million.

The company's second quarter net sales were positively impacted by stronger-than-expected performance in the Connectivity and Cable Solutions (CCS) and the Outdoor Wireless Networks (OWN) segments. This was partially offset by significantly weaker sales in the Networking, Intelligent Cellular & Security Solutions (NICS), and Access Network Solutions (ANS) segments.

Commscope's non-GAAP adjusted free cash flow for the second quarter of 2024 is expected to be $69 million, with cash and cash equivalents at the end of the quarter anticipated to be $346 million. On a trailing twelve-month basis, the non-GAAP adjusted EBITDA was $888 million on net sales of $5.1 billion, while core non-GAAP adjusted EBITDA was $603 million on core net sales of $3.9 billion.

The company's CEO, Chuck Treadway, noted that despite market uncertainties and challenging conditions in various business units during the first half of the year, there was an improvement in the second quarter's core performance driven by strength in the CCS segment, particularly in the data center and cloud business. Treadway also emphasized that customer inventory levels have continued to show signs of stability.

Commscope recently entered into a definitive agreement to sell its OWN segment and the Distributed Antenna Systems (DAS) business unit of the NICS segment to Amphenol Corporation (NYSE: APH) for $2.1 billion in cash. The transaction is expected to be completed in the first half of 2025.

The expected second quarter 2024 results are preliminary and subject to the company's quarter-end close procedures. Commscope will host a conference call on August 8th to discuss these results.

The market has reacted to these announcements by moving the company's shares 20.3% to a price of $2.31. If you want to know more, read the company's complete 8-K report here.

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