NASDAQ$VISN

Vistance Networks Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

CommScope's first quarter results reflected net sales increase and profitability challenges.

CommScope reported a 7.6% increase in net sales compared to the same quarter last year, reaching $2.23 billion. However, the company experienced a net loss of $139.9 million, and a decrease in Non-GAAP adjusted EBITDA to $253.3 million. The company is focused on pricing initiatives to recover inflation and expects margin improvement in the second half of the year.

  • Net sales increased 8% year-over-year for consolidated company.
  • Core CommScope net sales increased 10% year-over-year.
  • Connectivity and Cable Solutions and Outdoor Wireless Networks saw net sales increases of 24% and 20% year-over-year, respectively.
  • The company is re-affirming its commitment to full year 2022 Core adjusted EBITDA between $1.15 - $1.25 billion.

Headline financials

Total Revenue

$2.23B

Previous: $2.07B+7.6%
EPS (adj)

$0.26

Previous: $0.36-27.8%
Capital Expenditures

-$27.4M

Previous: -$26.4M-3.8%
Free Cash Flow

-$167M

Previous: -$124M-34.9%
Net Income

-$140M

Previous: -$97.6M-43.3%
Operating Income

$26.8M

Previous: $8.9M+201.1%
Gross Profit

$636M

Previous: $672M-5.3%
Cash & Equivalents

$315M

Previous: $326M-3.4%
Total Assets

$13.1B

Previous: $13.4B-1.8%
Stock-Based Comp

$16.5M

Previous: $23.5M-29.8%

Revenue & EPS history

CommScope · Revenue · Quarterly

$2.23B

Q1 2022+7.6%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

CommScope · $299M total across 1 segment · Q1 2023

  • Aurora segment
    $299M

Forward guidance

CommScope reaffirmed its commitment to full year 2022 Core adjusted EBITDA between $1.15 - $1.25 billion.

Tailwinds

  • CommScope is committed to unlocking additional capacity for connectivity and cabling to fuel organic growth.
  • Driving growth through investments in innovative products such as NOVUX™ product line of fiber connectivity.
  • Investments in next-generation XGS-PON suite, MOSAIC™.
  • Investments in ONECELL®.
  • Investments in DOCSIS® 4.0.

Headwinds

  • The global supply chain challenges and their adverse impact on its business and financial results will persist, at least through the remainder of 2022, and may extend into periods thereafter.
  • The Company is experiencing limited supply of memory devices, capacitors and silicon chips, which has increased its costs and has impacted its ability to deliver on a timely basis due to extended lead times.
  • Prices for certain commodities that it uses have experienced significant volatility as a result of changes in the levels of global demand, supply disruptions and other factors.
  • CommScope is also mitigating certain shortages by purchasing components in advance and maintaining higher levels of inventory or finding alternate vendors for some components.
  • Margins remained under pressure during the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.2%

Avg return

Earnings day

-3.0%

Avg return

5 days after

+2.8%

Avg return

30 days after

61%

33 / 54 earnings

Positive

+34.3%

Q2 2024

Best reaction

-38.4%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+22.2%+17.3%+19.1%
Q4 2025-0.7%-2.2%+0.8%
Q3 2025+6.8%+1.1%+25.3%
Q1 2025+21.7%+29.1%+61.5%
Q4 2024+26.2%+26.4%+9.8%
Q3 2024-32.4%-32.7%-23.6%
Q2 2024+34.3%+52.1%+91.1%
Q1 2024+0.0%+11.4%+54.3%
Q4 2023-38.4%-43.8%-29.2%
Q3 2023-7.0%-3.8%+17.2%
Q2 2023-27.1%-21.7%-20.8%
Q1 2023+0.2%-7.5%-3.1%
Q4 2022+5.7%-1.6%-18.2%
Q3 2022-28.8%-26.3%-33.3%
Q2 2022+0.2%-4.5%+31.1%
Q1 2022+16.2%+7.6%+23.1%
Q4 2021+9.4%+6.6%-8.5%
Q3 2021-11.4%-16.7%-12.7%
Q2 2021-20.1%-22.7%-24.3%
Q1 2021+10.3%+7.1%+25.3%
Q4 2020-14.7%-12.8%+0.1%
Q3 2020+2.6%+2.2%+34.5%
Q2 2020+16.2%+12.3%+9.4%
Q1 2020+9.6%-4.5%+7.7%
Q4 2019-12.9%-21.4%-50.0%
Q3 2019+33.6%+29.3%+12.0%
Q2 2019-5.4%-10.8%-12.6%
Q1 2019-17.2%-19.3%-28.3%
Q4 2018+1.6%-0.1%-9.4%
Q3 2018-20.8%-24.4%-30.9%
Q2 2018+4.0%+3.3%+3.0%
Q1 2018-25.7%-26.7%-23.3%
Q4 2017+0.4%-0.3%+5.2%
Q3 2017+4.2%+8.3%+12.2%
Q2 2017-12.2%-13.5%-11.3%
Q1 2017-13.0%-10.8%-8.7%
Q4 2016-7.4%-5.6%+2.3%
Q3 2016+6.2%+12.0%+18.3%
Q2 2016-5.9%-9.9%-7.5%
Q1 2016+13.8%
Q4 2015+11.5%
Q3 2015-14.0%
Q2 2015+2.7%
Q1 2015+5.6%
Q4 2014+1.6%
Q3 2014-9.3%
Q2 2014+3.4%
Q1 2013+9.2%
Q1 2014+9.2%
Q4 2013+15.7%
Q3 2012+1.7%
Q4 2012+1.7%
Q2 2013+1.7%
Q3 2013+1.8%
Q2 2012

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