Commscope beats by $0.04, beats on revs; guides Q2 EPS, revs below consensus (23.06)
- Reports Q1 (Mar) earnings of $0.48 per share, excluding non-recurring items, $0.04 better than the S&P Capital IQ Consensus of $0.44; revenues fell 1.9% year/year to $1.1 bln vs the $1.08 bln S&P Capital IQ Consensus.
- "The ARRIS business has been navigating revenue pressures driven by several external factors," said Executive Vice President and Chief Financial Officer Alex Pease. "This includes a reduction in capital spending by certain large North American network operators, a channel inventory draw-down and the impact of transitioning production out of China due to tariffs. We believe these issues are largely timing related and are confident in our ability to manage through them. We expect to build upon our well-established track record of meeting or exceeding synergy targets to deliver solid value for shareholders."
- Co issues downside guidance for Q2, sees EPS of $0.54-0.62, excluding non-recurring items, vs. $0.70 S&P Capital IQ Consensus; sees Q2 revs of $2.49-2.65 bln vs. $2.81 bln S&P Capital IQ Consensus.
- "After a thoughtful and constructive evaluation of the company's business dynamics, specifically that a significant portion of revenue is derived from short-cycle or project-based engagements, CommScope's Board of Directors and executive leadership team have decided to transition away from providing annual financial guidance," Edwards said. "We believe quarterly guidance is more helpful in evaluating our company and appropriately reflective of our forecasting capabilities, and that the timing to make this change is appropriate as we integrate with ARRIS.