In This Article:
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Core Net Sales: $1.112 billion, a year-over-year increase of 23%.
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Core Adjusted EBITDA: $245 million, a year-over-year increase of 159%.
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Core Adjusted EBITDA Margin: 22% of revenues.
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CCS Revenue: $724 million, a 20% increase year-over-year.
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CCS Adjusted EBITDA: $182 million, an 87% increase year-over-year.
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Enterprise Fiber Revenue: $213 million, an 88% increase year-over-year.
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Core Net Adjusted EBITDA: $25 million, increased by $42 million from the prior year.
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ANS Net Sales: $225 million, a 20% increase year-over-year.
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ANS Adjusted EBITDA: $38 million, a 177% increase year-over-year.
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Adjusted EPS: $0.14 per share, compared to a loss of $0.24 in Q1 2024.
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Core CommScope Backlog: $1.179 billion, up $202 million from Q4 2024.
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Free Cash Flow: Use of $202 million in Q1 2025.
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Net Leverage Ratio: 7.8 times.
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Stock Buyback Program: $50 million approved by the Board of Directors.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CommScope Holding Co Inc (NASDAQ:COMM) reported a 23% year-over-year increase in core net sales, reaching $1.112 billion.
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Core adjusted EBITDA increased by 159% year-over-year, reaching $245 million, marking the fourth consecutive quarter of sequential improvement.
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The enterprise fiber business saw an 88% increase in revenue year-over-year, driven by demand in data centers and AI-focused architectures.
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The company has a flexible global manufacturing footprint, which helps mitigate the impact of tariffs and supports US manufacturing.
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CommScope Holding Co Inc (NASDAQ:COMM) has approved a stock buyback program, indicating confidence in the company's undervalued equity and potential shareholder value generation.
Negative Points
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The company faces potential tariff impacts, estimated to be between $10 million to $15 million in the second quarter, which they plan to mitigate by the third quarter.
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Despite strong performance, the economic environment remains fluid, with macroeconomic uncertainties affecting future projections.
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The ANS segment, although showing improvement, is still in the early phases of the DOCSIS 4.0 upgrade cycle, with some customers delaying their upgrade decisions.
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Free cash flow guidance for 2025 remains at breakeven, with significant cash burn in the first quarter due to working capital needs and higher interest payments.
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The company expects a sequential decline in core net adjusted EBITDA in the second quarter due to increased variable compensation and the elimination of first-quarter inventory adjustment benefits.