Loading...
•
Dec 31, 2019
CommScope Q4 2019 Earnings Report
CommScope's Q4 2019 results were reported, showing a significant increase in net sales primarily due to the ARRIS acquisition, but also a net loss driven by goodwill impairment charges.
Key Takeaways
CommScope's Q4 2019 net sales increased by 117.3% to $2.30 billion, largely due to the ARRIS acquisition. However, the company reported a net loss of $(450.5) million, driven by goodwill impairment charges. Non-GAAP adjusted net income was $106.6 million, or $0.46 per diluted share.
Net sales increased 117.3% year over year to $2.30 billion.
GAAP net loss available to common stockholders was $(450.5) million.
Non-GAAP adjusted EBITDA increased 64.6% to $323.6 million year over year.
The company ended the fourth quarter with $598.2 million in cash and cash equivalents.
Revenue by Geographic Location
Forward Guidance
CommScope provided first quarter 2020 guidance, anticipating revenue between $1.9 billion and $2.1 billion and a net loss between $(181) million and $(151) million. The guidance reflects an expected negative impact from the Coronavirus.
Positive Outlook
- Revenue of $1.9 billion – $2.1 billion
- Non-GAAP adjusted EBITDA of $180 million – $260 million
- Non-GAAP adjusted effective tax rate of approximately 25% – 27%
- Non-GAAP adjusted earnings per diluted share of $0.03 – $0.18
Challenges Ahead
- Net loss of $(181) million – $(151) million
- Loss per share of $(0.89) – $(0.88)
- Uncertainty regarding the impact of the Coronavirus
- Factoring in approximately $60 million of negative impact from the Coronavirus in our first quarter adjusted EBITDA guidance
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...