HICKORY – CommScope Holding Co., a global provider of infrastructure solutions for communication networks, reported a 12.2 percent increase in its second quarter 2018 net income from the same quarter a year ago, a result of higher North American sales and cost reductions.
The Hickory, North Carolina-based company reported an adjusted net income, which excludes things such as amortization of certain assets and restructuring costs, of $133.1 million, up from $118.6 million in second quarter 2017.
That meant CommScope had earnings of 68 cents per share, which exceeded analyst expectations of 65 cents per share, according to Yahoo Finance.
CommScope reported sales of $1.24 billion, a 5.6 percent increase from $1.17 billion in last year’s second quarter. That revenue number also topped analyst expectations of $1.23 billion for the quarter.
“The strong year-over-year growth in North America in our mobility segment and outdoor network solutions business reflects our industry-leading technology, scale and customer relationships,” CEO and President Eddie Edwards said in a statement.
The company’s operating income from its mobility segment increased 13 percent year-over-year, to $108 million. Growth in that segment primarily resulted from double-digit increases in North American sales, and was partially offset by decreases in sales in the Asia-Pacific region.
In the filing, which can be found here, CommScope also stated that it would be repaying $400 million of its term loan Tuesday. The company will be funding that payment with $250 million cash and $150 million from its credit facility.
CommScope also provided guidance for its upcoming third quarter earnings report.
The company expects total sales between $1.19 billion and $1.24 billion, which lines up with analyst expectations of $1.23 billion. It also expects net earnings between 63 cents and 68 cents for the third quarter, while analysts are predicting 66 cents per share.
“We remain committed to identifying and pursuing opportunities to drive solid growth in core and adjacent markets through innovation and accretive acquisitions,” Edwards said. “We are confident that the continued prudent investment in our business, strategic allocation of capital toward accretive mergers and acquisitions, and a focus on operational efficiency will enable us to deliver continued growth and value to shareholders.”
CommScope was trading at $32.18 per share midday Tuesday, a 5.03 percent increase from the day’s opening. That was the highest the company’s stock had traded at since the end of April.
This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism