Commscope misses by $0.07, misses on revs; guides Q4 EPS below consensus, revs below consensus
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Reports Q3 (Sep) earnings of $0.59 per share, excluding non-recurring items, $0.07 worse than the S&P Capital IQ Consensus of $0.66; revenues rose 1.9% year/year to $1.15 bln vs the $1.22 bln S&P Capital IQ Consensus.
- Sales increased 2 percent year over year as growth in the North America and the Europe, Middle East and Africa (EMEA) regions more than offset lower sales in the Asia-Pacific region. Double-digit Outdoor Network Solutions growth, was partially offset by a decline in Indoor Copper.
- Third quarter Connectivity Solutions segment sales increased 3 percent year over year to $732 million driven primarily by strength in North America as well as the EMEA region, partially offset by a decline in the Asia-Pacific region.
- Co issues downside guidance for Q4, sees EPS of $0.34-0.39, excluding non-recurring items, vs. $0.59 S&P Capital IQ Consensus; sees Q4 revs of $1.015-1.065 bln vs. $1.17 bln S&P Capital IQ Consensus.
- Co states, "Excluding the impact of the ARRIS acquisition, we expect modest growth in 2019 and relatively stable year-over-year results, reflecting the impact of adverse spending patterns at large North American operators. Looking ahead, we expect that the ARRIS transaction will enable CommScope to achieve significant EPS accretion, execute on additional cost savings opportunities and unlock high-growth segments to deliver strong shareholder returns over the longer term.