CommScope reports Q4 EPS (2c), consensus 6c

Reports Q4 revenue $1.19B, consensus $1.50B. reports core segment adjusted EBITDA of $198.9 M. “As we closed a challenging year, CommScope net sales declined 23% from the prior year to $5.79B and delivered adjusted EBITDA at the midpoint of our range at $1.02B down 18% from the prior year. As previously discussed, all of our businesses had significant pressure by year-end. In addition to the challenges we have been experiencing in CCS, OWN, and ANS, we have started to see similar adjustments in the NICS business as customers continued to digest inventory. Although we believe there will be a market recovery in the second half of 2024, visibility continues to be limited on the timing and extent of that recovery. As stated, we are targeting an additional $100 million of cost savings in early 2024. Our cost actions as well as our investments in capacity that we have implemented will better position us when demand returns to more normalized levels,” said Chuck Treadway, President and Chief Executive Officer. “For the fourth quarter, CommScope reported consolidated net sales of $1.186 billion, a decrease of 38% from the prior year, driven by declines in all of the segments. As a result of lower revenues, adjusted EBITDA of $191 million, declined 49% versus the prior year. Adjusted EPS was a loss of $0.02 per share. As we turn our focus to 2024, based on the lack of visibility on timing of a market recovery, we are not providing updated 2024 annual guideposts at this time. As we continue to deal with lower market demand, we would expect that the first quarter Core adjusted EBITDA to be in the range of $100 to $125 million,” said Kyle Lorentzen, Chief Financial Officer.