CommScope reports Q3 non-GAAP EPS 13c, consensus 30c

Reports Q3 revenue $1.6B, consensus $1.98B. Q3 core net sales were $1.35B. “In Q3, CommScope net B. 33% from the prior year to $1.600B and adjusted EBITDA declined 28% to $249M. As discussed previously, our CCS and OWN businesses have been experiencing lower order rates since the beginning of the year and we have seen no meaningful recovery in Q3. In addition to the challenges we have been experiencing in CCS and OWN, we have started to see similar adjustments in ANS. We expect these difficult market conditions to continue over the next few quarters as customers manage inventories and cash. We continue to manage what we can control including costs. We are targeting an additional $100M cost savings by the end of Q1 2024…,” said CEO Chuck Treadway. “Based on current visibility driven by a weaker demand outlook for the remainder of 2023, we reduced our Core adjusted EBITDA guideposts to a range of $1.00B-$1.05 billion. We continued to de-lever as we repurchased and retired $26M of our long-term debt for cash consideration of $17M bringing the total debt repurchases to $111M since the beginning of the year. We finished the quarter with a net leverage ratio of 6.7x. Liquidity remained strong at more than $1.29B including cash at quarter end of $519M,” said Kyle Lorentzen, CFO.