CommScope (NASDAQ:COMM), a provider of infrastructure solutions for communication and entertainment networks, has seen it stock price rally by 24% over the last month. The rally was primarily driven by stronger-than-expected Q3 results which were reported on November 7. The company’s adjusted EPS stood at $0.55 per diluted share, versus the consensus estimate of $0.44. Additionally, the company looks poised to realize annual synergies of $75 Mil in FY 2020 from the integration of Arris International.
We step back from these recent swings to review CommScope’s performance over the last few years, as a context for what might come next. Our Interactive dashboard – Why Is CommScope Stock Up 24% Over The Last Month? – reviews the near term reasons and the big picture.
The context for the last few years:
A closer look At CommScope’s Total Revenues over the last few years and the outlook.
Total Revenues for CommScope Holding Company marginally increased from $4.56 Bil in 2017 to $4.57 Bil in 2018; an increase of 0.174%.
This compares with Total Revenues growth of:
- -0.569% in 2015
- 29.3% in 2016
- -7.37% in 2017
We expect Total Revenues growth to be 84% in 2019, on account of the acquisition of ARRIS International.
A closer look At CommScope’s Total Expenses over the last few years and the outlook
Total Expense for CommScope Holding Company marginally increased from $4.35 Bil in 2017 to $4.40 Bil in 2018; an increase of 1.08%.
This compares with Total Expense growth of:
- 10.2% in 2015
- 20.2% in 2016
- -6.45% in 2017
We expect Total Expense growth to be 99% in 2019, on account of higher costs following the acquisition of ARRIS International.
How does CommScope’s Revenue Growth compare with rivals?
For more information on how CommScope’s’ revenue growth compares with ADTRAN, Ciena Corporation and Calix, view our interactive dashboard analysis.
How has CommScope’s EBT trended?
EBT for CommScope Holding Company decreased significantly by 18.6% from $210 Mil in 2017 to $171 Mil in 2018.
We expect LBT to increase to $350 Mil in 2019.
How has CommScope’s Net Income and EPS trended?
For more details about CommScope’s Net Income and EPS, view our interactive dashboard analysis.
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