CommScope (COMM) Stock Falls on Revenue Miss
NEW YORK (TheStreet) -- Shares of CommScope (COMM) - Get Report were falling 13.5% to $27.96 on Monday after the communication equipment company missed analysts' estimates for revenue in the third quarter.
CommScope reported revenue of $972.6 million for the third quarter, a 2.7% decrease from the year-ago quarter, and below analysts' estimates of $1.07 billion. The company reported earnings of 53 cents a share for the quarter, above analysts' estimates of 50 cents a share for the quarter.
"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," President and CEOO Eddie Edwards said in a statement.
Looking to the fourth quarter, CommScope said it expects to report earnings of 39 cents to 44 cents a share and revenue of $1.125 billion to $1.2 billion. Analysts expect the company to report earnings of 53 cents and revenue of $1.29 billion for the fourth quarter.
About 1.7 million shares of CommScope were traded by 10:23 a.m. Monday, above the company's average trading volume of about 1.2 million shares a day.
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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