Shares of CommScope (NASDAQ:COMM) have soared today, up by 20% as of 12:25 p.m. EDT, after the company reported second-quarter earnings. Both top- and bottom-line results beat analyst expectations.
Revenue in the second quarter came in at $2.1 billion, slightly ahead of the $2.06 billion in sales that Wall Street was expecting. That resulted in adjusted earnings per share of $0.32, compared to the consensus estimate of $0.19 per share in adjusted profits. The networking technology company recently refinanced $700 million of senior unsecured notes to give it greater financial flexibility during the COVID-19 pandemic.
"Our team is actively evolving our business to better position us for growth and success," said CEO Eddie Edwards in a statement. "We are focused on right-sizing our operations, reprioritizing investments, and focusing on the key technologies that empower our connected society."
At the end of the second quarter, CommScope had $823.4 million in cash and owed $250 million under an existing revolver. The company decided to repay the $250 million in July since cash flow had improved and CommScope determined that it did not need that cash.
Following the note refinancing, CommScope will resume debt repayments in the third quarter, according to CFO Alex Pease. The company did not provide specific financial guidance due to ongoing uncertainty related to the public health crisis, but said it expects revenue and adjusted EBITDA to "improve modestly" in the third quarter.
"As we look ahead to the second half of the year, we believe some of that risk has abated, our business has strengthened, and our liquidity remains very strong," Pease added.