CommScope Holding Company, Inc. (NASDAQ:COMM) saw its shares skyrocket by over 41% in Monday’s premarket session, following the release of second-quarter earnings that far surpassed analyst projections, fueled by strong results across every segment of its business.
The network infrastructure company delivered adjusted earnings per share of $0.44, significantly ahead of the $0.23 expected by analysts. Quarterly revenue surged 31.7% year-over-year to $1.39 billion, topping the $1.25 billion consensus estimate and up from $1.05 billion in the same period a year ago.
“We are extremely pleased with our outstanding results in the second quarter,” said Chuck Treadway, President and Chief Executive Officer. “CommScope net sales of $1.39 billion increased 31.7% from the prior year. Net sales were positively supported by stronger-than-expected results across all segments.”
Adjusted EBITDA for the quarter jumped 79% from a year ago to $337.8 million, representing 24.3% of total revenue. That compares with a 17.9% margin in the prior year, reflecting a year-over-year increase of 640 basis points and marking the fifth consecutive quarter of margin expansion.
The company reported robust growth across all its business units: Connectivity and Cable Solutions (CCS) revenue climbed 20.2% to $875.4 million, RUCKUS posted a 46.5% increase to $190.2 million, and Access Network Solutions (ANS) soared 65% to $322.5 million.
Based on the strong Q2 performance, CommScope raised its full-year 2025 guidance for adjusted EBITDA to a range of $1.15 billion to $1.20 billion.
The company also reaffirmed its plans to divest its CCS division to Amphenol (NYSE:APH) for roughly $10.5 billion in cash, a transaction expected to close in the first half of 2026.
Kyle Lorentzen, CommScope’s Chief Financial Officer, emphasized that the proceeds from the sale will be used to eliminate all existing debt, redeem preferred equity, and issue a shareholder dividend within 60 to 90 days of the deal closing.
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