CommScope (COMM +0.67%), a provider of communications technology equipment, saw a big leap in its share price on the first trading day of the week. The company's stock soared more than 20% today following the release of preliminary quarterly results. That contrasted very well with the generally flat performance of the S&P 500 index.
Upside surprise with projected revenue
For its second quarter, CommScope is estimating that net sales will come in at $1.39 billion, with income from continuing operations landing at $75 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to be $302 million. The company did not provide any net income figures.
Those numbers represent quite a change from the same quarter of 2023, when net sales topped $1.9 billion while adjusted EBITDA was just under $260 million.
Although management is expecting revenue to fall when compared to the year-ago period, that $1.39 billion is well above the consensus analyst estimate of $1.21 billion. And that was likely a major reason for the positive investor reaction.
In the news release unveiling the preliminary results, CommScope quoted CEO Chuck Treadway as saying that the company was "driven by strength in our [connectivity and cable solutions] segment, specifically our data center and cloud business. Additionally, customer inventory levels have continued to show signs of stability."
NASDAQ: COMM
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Official figures coming soon
We are scheduled to get CommScope's official, audited second-quarter results in less than two weeks. The company has scheduled an earnings release and conference call to discuss the results on Thursday, Aug. 8, before market open.
