Commscope (COMM) Stock Price Down 2.5% Following Weak Earnings

Commscope Holding Company Inc (NASDAQ:COMM) fell 2.5% during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $18.52 and last traded at $19.08. 169,390 shares changed hands during trading, a decline of 93% from the average session volume of 2,545,107 shares. The stock had previously closed at $19.56.

The communications equipment provider reported $0.59 earnings per share for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.07). The business had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.22 billion. Commscope had a net margin of 4.43% and a return on equity of 24.14%. Commscope’s revenue for the quarter was up 1.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.55 EPS.

A number of brokerages have recently weighed in on COMM. Morgan Stanley set a $23.00 target price on Commscope and gave the company a “hold” rating in a report on Friday. They noted that the move was a valuation call. Longbow Research downgraded Commscope from a “buy” rating to a “neutral” rating in a report on Friday. Raymond James upgraded Commscope from a “market perform” rating to an “outperform” rating in a report on Thursday. ValuEngine downgraded Commscope from a “sell” rating to a “strong sell” rating in a report on Tuesday. Finally, BidaskClub downgraded Commscope from a “sell” rating to a “strong sell” rating in a report on Thursday, October 11th. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and five have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $33.79.

A number of large investors have recently added to or reduced their stakes in COMM. Principal Financial Group Inc. increased its holdings in Commscope by 31.8% in the first quarter. Principal Financial Group Inc. now owns 29,987 shares of the communications equipment provider’s stock worth $1,199,000 after buying an additional 7,235 shares during the last quarter. Guggenheim Capital LLC increased its holdings in Commscope by 7.6% in the first quarter. Guggenheim Capital LLC now owns 34,883 shares of the communications equipment provider’s stock worth $1,394,000 after buying an additional 2,463 shares during the last quarter. Royal Bank of Canada increased its holdings in Commscope by 5.3% in the first quarter. Royal Bank of Canada now owns 35,460 shares of the communications equipment provider’s stock worth $1,418,000 after buying an additional 1,782 shares during the last quarter. DnB Asset Management AS increased its holdings in Commscope by 11.6% in the second quarter. DnB Asset Management AS now owns 17,262 shares of the communications equipment provider’s stock worth $504,000 after buying an additional 1,800 shares during the last quarter. Finally, State of Alaska Department of Revenue increased its holdings in Commscope by 21.5% in the second quarter. State of Alaska Department of Revenue now owns 19,580 shares of the communications equipment provider’s stock worth $571,000 after buying an additional 3,460 shares during the last quarter.

The firm has a market capitalization of $4.76 billion, a P/E ratio of 9.35, a P/E/G ratio of 1.35 and a beta of 1.23. The company has a quick ratio of 2.16, a current ratio of 2.77 and a debt-to-equity ratio of 2.57.

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About Commscope (NASDAQ:COMM)

CommScope Holding Company, Inc provides infrastructure solutions for communications networks worldwide. The company's CommScope Connectivity Solutions segment offers optical fiber and twisted pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the SYSTIMAX, NETCONNECT, and Uniprise brands; and fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems, and cable assemblies for use in offices and data centers.

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