Shares of CommScope (NASDAQ:COMM) slumped on Thursday after the communications infrastructure provider reported its first-quarter results. The company beat analyst estimates across the board, but the decision to stop giving out annual guidance may be weighing on the stock. Shares were down about 16.2% at 1:30 p.m. EDT.
CommScope reported first-quarter revenue of $1.1 billion, down 1.9% year over year but $20 million above the average analyst estimate. The connectivity solutions segment suffered a 4.1% revenue decline, while the mobility solutions segment grew revenue by 1.5%.
Non-GAAP earnings per share came in at $0.48, down from $0.49 in the prior-year period but $0.04 higher than analysts were expecting. Adjusted EBITDA was up 0.1% to $208.4 million.
For the second quarter, CommScope expects revenue between $2.49 billion and $2.65 billion and non-GAAP EPS between $0.54 and $0.62. This guidance includes the impact of the acquisition of ARRIS, which closed on April 4.
CommScope announced along with its first-quarter results that it would no longer be providing annual guidance. The decision was made due to the significant amount of revenue derived from short-cycle and project-based engagements. "We believe quarterly guidance is more helpful in evaluating our company and appropriately reflective of our forecasting capabilities," said CommScope CEO Eddie Edwards.
While it's hard to pin down exactly why the stock tumbled on Thursday, the lack of annual guidance is probably playing a role.