Earnings: CommScope, LendingTree beat Street
Chapel Hill, N.C. — Good news for investors in CommScope and LendingTree: Their latest earnings beat Wall Street estimates.
- CommScope beats analyst projections for fourth quarter
CommScope Holding Co. reported an increase in fourth-quarter sales and earnings that beat analyst’s estimates.
The Hickory-based company that handles infrastructure solutions for communication networks reported a net income of $54 million, or 28 cents per diluted share and sales of $1.18 billion for the fourth quarter. The company reported a net loss of $75 million, or a loss of 39 cents per share, in the fourth quarter last year.
Adjusted for one-time gains and losses, the earnings were 61 cents per share. Wall Street was expecting earnings of 57 cents per share.
“We are very pleased to deliver another quarter of sales growth and outstanding financial results,” Chief Executive Officer Eddie Edwards. “We see growth opportunities ahead and are confident in our long-term market position.”
A strong performance in markets such, as the North American wireless and fiber-to-the-X are the reason for this quarter’s increase. These markets lead to an increase in sales of 1 percent and 6 percent in the connectivity solution segment and mobility solutions segment.
The company reported an increase in revenue to $5.15 billion from $5 billion the previous year. Sales in the 2016 fiscal year increased 29 percent to $4.92 billion, which is attributed to the 2015 acquisition of TE Connectivity’s telecom, enterprise, and wireless business.
CommScope’s stock price fell $2.59, or 6.43 percent, to $37.72 because it projected first-quarter earnings of 49 cents to 54 cents per share, below Wall Street estimates of 60 cents.
The company also projected first-quarter revenue of $1.1 billion to $1.15 billion, below estimates of $1.17 billion.
- LendingTree earnings beat analyst expectations
LendingTree Inc., the Charlotte-based operator of LendingTree.com, announced on Thursday that its revenue jumped 28.7 percent in the fourth quarter and earnings beat analyst estimates, according to a filing with the Securities and Exchange Commission.
The online loan marketplace reported fourth-quarter revenue of $100.8 million, compared to $78.3 million in the same period a year ago.
LendingTree also reported adjusted earnings per share of 87 cents, above analyst estimates of 78 cents.
“Despite the typical seasonal headwinds in the fourth quarter, we notched record levels of revenue,” said Gabe Dalporto, LendingTree’s chief financial officer, in a statement. “Our mortgage business returned to sequential revenue growth in the quarter and is behaving as expected as interest rates have risen.”
The company reported fourth-quarter net income of $7.3 million, down nearly 71 percent from LendingTree’s fourth quarter in 2015, when the company received a $23.9 million income tax benefit.
Revenue from LendingTree’s non-mortgage products grew 45 percent in the fourth quarter to $45.4 million. These include credit cards as well as personal, student and business loans. Meanwhile, revenue from its mortgage products increased 18 percent percent in the quarter to $55.4 million.
LendingTree announced in November it had acquired Delaware-based Iron Horse Holdings, which does business under the name CompareCards.com, for $85 million in cash. CompareCards operates an online credit card comparison platform.
“Our acquisition of CompareCards in November gives us the scale to compete and gain market share in the largest category for online comparison shopping in financial services,” Dalporto said.
Shares of LendingTree stock were up nearly 7 percent in pre-market trading on Thursday to $119.54, following a $112.15 close on Wednesday.
LendingTree’s online marketplace connects consumers with a network of lenders and creditors, allowing consumers to compare offerings across a full suite of providers. Since its inception in 1996, LendingTree has assisted with more than 65 million loan requests.
Note: This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism
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