CommScope Outlook Improves

Shares rise 16%.
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CommScope

(CTV) - Get Report

shares surged to take back their steep November losses after the communication-equipment maker ratcheted up its fourth-quarter outlook.

The Hickory, N.C., company starting losing substantial ground in late October after cutting its full-year guidance while setting a fourth-quarter sales range that dipped below the lower end of Wall Street's consensus.

Wednesday, however, CommScope lifted the low end of that range by $15 million, and the high end by $5 million, to between $435 and $445 million. That situates it just above the average analyst estimate of $434.2 million, according to Thomson Financial.

The company also raised its operating-margin view by a half-percentage point to between 11.5% and 12.5%, excluding items, and estimated that operating income will climb 30% to 45% from a year earlier. That translates into $47.2 million to $52.6 million. Analysts are expecting $51.2 million.

CommScope attributed the boost to upward trends in sales, orders and operations.

Shares were recently up $6.52, or 16.2%, to $46.71.