CommScope (COMM) Stock Down After Revenue Miss

CommScope (COMM) stock is falling after the company's 2015 third quarter revenue results were lower than analysts' had expected.
By Amanda Albright ,

NEW YORK (TheStreet) -- CommScopeHolding (COMM) - Get Report stock continues to decline, down by 3.12% to $27.60 on heavy trading volume on Tuesday, after the company's 2015 third quarter revenue results missed analysts' expectations.

Before the market open on Monday, the communication equipment company reported earnings of 53 cents a share for the quarter. Revenue decreased by 3% year-over-year to $973 million.

Analysts were expecting the company to report earnings of 50 cents per share on revenue of $1.07 billion.

After robust spending by wireless operators in 2014, wireless segment sales declined 25% year over year, CommScope said.

"Although slow spending from certain North American and European wireless operators is a near-term challenge, we expect longer-term demand for our Wireless solutions to be positively affected by wireless coverage and capacity expansion in emerging markets and the increasing demand for mobile broadband in developed markets," CEO Eddie Edwards said in a statement. 

So far today, 3.66 million shares of CommScope have traded, versus its 30-day average of 1.29 million shares. 

Separately, TheStreet Ratings team rates COMMSCOPE HOLDING CO INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate COMMSCOPE HOLDING CO INC (COMM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: COMM

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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