CommScope Beats On Q2; Predicts Stronger 2H

CommScope Holding Company, Inc COMM reported second-quarter FY22 net sales growth of 5.3% year-on-year to $2.30 billion, beating the consensus of $2.26 billion.
Core net sales grew 8.5% Y/Y to $1.88 billion due to higher net sales in the Connectivity and Cable Solutions and Outdoor Wireless Networks segments.
Connectivity and Cable Solutions' net sales of $986.7 million increased 26% Y/Y, driven by growth in Network Cable and Connectivity.
Outdoor Wireless Networks' net sales of $390.9 million rose 8.6% Y/Y.
Non-GAAP EPS of $0.41 beat the consensus of $0.29.
Core adjusted EBITDA declined 2.1% Y/Y to $286.8 million. The core adjusted EBITDA margin contracted 170 bps to 15.3%.
CommScope held $229.3 million in cash and equivalents.
CommScope reiterated the 2022 Core adjusted EBITDA outlook of $1.15 billion - $1.25 billion.
"Despite supply chain and other macroeconomic challenges, with our robust backlog and solid demand in our key end markets, we believe we are positioned to deliver a stronger second half," said CEO Chuck Treadway.
Price Action: COMM shares traded higher by 2.48% at $9.92 in the premarket on the last check Thursday.

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