Commscope (COMM) Shares Down 2.5% on Disappointing Earnings

Commscope Holding Company Inc (NASDAQ:COMM) dropped 2.5% on Friday following a weaker than expected earnings announcement. The stock traded as low as $18.52 and last traded at $19.08. Approximately 169,390 shares traded hands during trading, a decline of 93% from the average daily volume of 2,545,107 shares. The stock had previously closed at $19.56.

The communications equipment provider reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.07). Commscope had a net margin of 4.43% and a return on equity of 24.14%. The business had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the firm earned $0.55 EPS. The company’s revenue was up 1.9% compared to the same quarter last year.

Several research firms have recently weighed in on COMM. Longbow Research cut shares of Commscope from a “buy” rating to a “neutral” rating in a report on Friday. ValuEngine raised shares of Commscope from a “sell” rating to a “hold” rating in a report on Tuesday, July 31st. BidaskClub raised shares of Commscope from a “strong sell” rating to a “sell” rating in a report on Tuesday, July 31st. Morgan Stanley set a $23.00 price target on shares of Commscope and gave the stock a “hold” rating in a report on Friday. They noted that the move was a valuation call. Finally, Northland Securities set a $36.00 price target on shares of Commscope and gave the stock a “buy” rating in a report on Thursday, August 2nd. Three equities research analysts have rated the stock with a sell rating, nine have given a hold rating and five have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $33.79.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Trexquant Investment LP bought a new position in Commscope in the third quarter valued at $1,945,000. DekaBank Deutsche Girozentrale increased its stake in Commscope by 24.2% in the third quarter. DekaBank Deutsche Girozentrale now owns 25,505 shares of the communications equipment provider’s stock valued at $834,000 after acquiring an additional 4,975 shares during the last quarter. CIBC World Markets Inc. bought a new position in Commscope in the third quarter valued at $1,572,000. Staley Capital Advisers Inc. bought a new position in Commscope in the third quarter valued at $1,242,000. Finally, BlackRock Inc. increased its stake in Commscope by 2.8% in the third quarter. BlackRock Inc. now owns 10,593,048 shares of the communications equipment provider’s stock valued at $325,842,000 after acquiring an additional 290,848 shares during the last quarter.

The company has a market cap of $4.76 billion, a P/E ratio of 9.60, a price-to-earnings-growth ratio of 1.35 and a beta of 1.23. The company has a debt-to-equity ratio of 2.57, a current ratio of 2.77 and a quick ratio of 2.16.

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Commscope Company Profile (NASDAQ:COMM)

CommScope Holding Company, Inc provides infrastructure solutions for communications networks worldwide. The company's CommScope Connectivity Solutions segment offers optical fiber and twisted pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the SYSTIMAX, NETCONNECT, and Uniprise brands; and fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems, and cable assemblies for use in offices and data centers.

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