CommScope Reports Strong Earnings Results and Director Purchases Shares
CommScope, the global leader in infrastructure solutions for communications networks (NASDAQ: COMM), announced its fourth-quarter earnings results on February 23. The communications equipment provider reported a revenue of $2.32 billion during the quarter, with earnings per share (EPS) of $0.49, surpassing analysts’ prediction of $0.42 by $0.07.
The company’s net margin remained negative at 14.11%, while return on equity was even worse at -51.71%. However, it is worth noting that revenue increased by 4% from the previous year as well.
Furthermore, news broke recently that Claudius E. Iv Watts of CommScope purchased an additional 10,000 shares of stock in March at an average price of $6.75 per share; this led to a total transaction cost of $67,500 in exchange for direct ownership rights over those shares.
Such insider transactions certainly pique investor interest; it indicates that company directors are confident and invested enough in their business operations to put their own funds into those same companies.
After announcements like these along with strong earnings reports being circulated across the market, it is worth tracking how investors respond and what future trading data shows regarding CommScope’s growth potential.
Ticker-wise, CommScope opened the week on Monday with stocks valued at $5.33 per share —compared to a market cap value of roughly $1.12 billion– having experienced significant declines from its high point last year where stocks traded as high as $13.73 apiece.
The current P/E ratio stands at -0.-83 and a P/E/G ratio round about 0.20 – much lower than market averages—but given recent insider moves made by the directorate coupled with promising earnings news, all eyes may turn toward CommScope for future developments in infrastructure technology solutions within communication networks around the world.
CommScope’s Earnings Estimates Garner Attention from Investment Analysts
CommScope Holding Company, Inc. (NASDAQ:COMM) has been garnering attention from investment analysts lately due to an increase in earnings estimates. Investment research firm Zacks Research has boosted their Q1 2023 earnings per share estimates for CommScope, a communications equipment provider. Their new forecast predicts that the company will post earnings of $0.26 per share for the quarter, up from their previous estimate of $0.25.
CommScope’s current full-year earnings estimate is $1.88 per share, and Zacks Research has also issued estimates for the company’s Q4 2023 and Q2 2024 earnings at $0.52 EPS and $0.40 EPS, respectively.
Several other equities research analysts have examined CommScope recently as well. Deutsche Bank raised the stock’s target price from $9 to $11 and gave it a “buy” rating on April 3rd, while Credit Suisse Group cut their price target from $17 to $13 but maintained an “outperform” rating on February 24th.
TheStreet downgraded CommScope from a “c-” rating to a “d” rating on March 20th, StockNews.com began coverage on the company with a “hold” rating on March 16th, and JPMorgan Chase & Co. lowered their price objective from $14 to $10 and set a “neutral” rating for the company on December 20th.
Despite mixed reviews, hedge funds have shown interest in buying and selling shares of CommScope lately. Vanguard Group Inc., FPR Partners LLC, Wellington Management Group LLP, BlackRock Inc., and Fuller & Thaler Asset Management Inc., among others, have all increased their positions in the company this year.
As of June 2nd, Bloomberg.com shows that among analysts who cover CommScope Holdings Company Inc., there are six “hold” ratings and one “sell” rating. Meanwhile, the company’s average target price is $11, a more optimistic prediction than the current stock price of $8.82. Investors should keep an eye on CommScope in the coming months to see if these earnings estimates and analyst ratings come to fruition.