CommScope Tops Q3 Earnings Estimates on Solid Top-Line Improvement

CommScope Holding Company, Inc. COMM reported strong third-quarter 2025 results, wherein both bottom and top lines surpassed the respective Zacks Consensus Estimate. Quarterly revenues increased more than 50% year over year, driven by solid demand across all segments. Management’s strong focus on innovations, strategic expansions and core business also drove the top line.Net IncomeOn a GAAP basis, net income from continuing operations in the September quarter was $106.9 million or 38 cents per share against a net loss of $96.7 million or a loss of 52 cents per share a year ago, primarily driven by solid revenues.Non-GAAP net income in the reported quarter was $172 million or 62 cents per share against an adjusted net loss of $13.2 million or a loss of 6 cents per share in the prior year. The bottom line beat the Zacks Consensus Estimate of 37 cents.CommScope Holding Company, Inc. Price, Consensus and EPS Surprise CommScope Holding Company, Inc. price-consensus-eps-surprise-chart | CommScope Holding Company, Inc. QuoteRevenuesConsolidated revenues improved to $1.63 billion from $1.08 billion a year ago, driven by stronger sales in all the segments. Revenues surpassed the consensus estimate of $1.42 billion.Revenues in the Connectivity and Cable Solutions (CCS) segment were up 51.1% to $1.11 billion, backed by the strong cloud and datacenter growth, including GenAI projects. Sales in the Ruckus segment increased 15.2% year over year to $178.5 million, driven by solid demand for Ruckus WiFi solutions and an improved channel inventory position. Sales in the Access Network Solutions (ANS) segment were $337.8 million compared with $190.6 million in the year-ago quarter. The 77.2% year-over-year growth was driven by higher sales of Access technologies and broadband networks solutions.Region-wise, revenues in the United States increased 70.7% year over year to $1.22 billion. Europe, the Middle East and Africa reported revenues of $167.6 million, up 5.2% year over year. Asia Pacific revenues were $162.8 million, up 28.6% year over year. Caribbean and Latin American revenues fell 4.8% year over year to $45.2 million, while revenues from Canada were down 0.3% year over year to $34.1 million.Other DetailsGross profit improved to $667.8 million from $435.1 million in the year-ago quarter due to higher revenues. Total operating expenses rose to $375.5 million from $337.3 million owing to higher SG&A and R&D costs. Nevertheless, operating income increased to $300.9 million from $102.2 million due to top-line growth. Non-GAAP adjusted EBITDA nearly doubled to $402.5 million from $204.2 million a year ago.Cash Flow & LiquidityIn the third quarter, CommScope generated $151.4 million cash from operations compared with $122.2 million in the prior year. As of Sept. 30, 2025, the company had $705.3 million in cash and cash equivalents with $7.25 billion long-term debt. Free cash flow for the reported quarter was $135.0 million. As of Sept. 30, 2025, the company had no outstanding debt under its revolving credit facility and had a borrowing capacity of $576.5 million.For the full year, management currently expects adjusted EBITDA in the range of $1.3-$1.35 billion compared to $1.15-$1.2 billion estimated earlier.Zacks RankCommScope currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesArista Networks Inc. ANET is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.Akamai Technologies, Inc. AKAM is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.Pinterest, Inc. PINS is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report CommScope Holding Company, Inc. (COMM): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks