Shares of CommScope (COMM -4.94%) have tanked today, down by 10% as of 2:45 p.m. EST, after the company reported fourth-quarter earnings. The results were mixed relative to analyst expectations.
Revenue in Q4 declined 7% to $2.13 billion, which missed the consensus estimate of $2.18 billion in sales. That resulted in adjusted earnings per share of $0.59, topping the analyst forecast of $0.44 per share in adjusted profits. The telecommunications equipment company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $362.2 million.
"While 2020 was a year of change, our dedicated team, resilient supply chain and agile operations allowed us to quickly adapt and innovate across all aspects of our business, and achieve solid financial results while serving our customers around the world," CEO Chuck Treadway said in a statement. "Connectivity has never been more vital to businesses and our society."
CommScope says it has improved liquidity and de-risked its capital structure, while the company will continue paying down debt going forward. Looking ahead to 2021, the company expects the shift to remote work and learning to keep driving demand for broadband networks. There will also be a C-band auction in the second half of the year that is expected to boost spending on cell towers. Many venues and commercial facilities are also upgrading networks and migrating to the cloud.
The company also increased the size of its board of directors from 12 to 13 and appointed Derrick Roman to the board as an independent director, effective March 1.