NASDAQ$VISN

Vistance Networks Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

CommScope's financial performance declined due to softened demand and inventory adjustments.

CommScope reported a significant decrease in net sales and adjusted EBITDA for Q3 2023, primarily due to lower order rates in the CCS, OWN, and ANS segments. The company is implementing additional cost savings measures and expects difficult market conditions to persist. Despite the challenges, liquidity remained strong.

  • Net sales decreased by 33% year-over-year to $1.600 billion.
  • GAAP net loss was $828.7 million, including asset impairments of $895.1 million.
  • Non-GAAP adjusted EBITDA decreased by 28% year-over-year to $248.6 million.
  • The company is targeting an additional $100 million in cost savings by the end of Q1 2024.

Headline financials

Total Revenue

$1.6B

Previous: $2.38B-32.8%
EPS (adj)

$0.13

Previous: $0.50-74.0%
Capital Expenditures

-$8.7M

Previous: -$23.6M+63.1%
Free Cash Flow

-$837M

Previous: -$700K-119528.6%
Net Income

-$829M

Previous: $22.9M-3718.8%
Operating Income

-$826M

Previous: $156M-630.7%
Gross Profit

$546M

Previous: $736M-25.8%
Cash & Equivalents

$519M

Previous: $146M+256.6%
Total Assets

$10.1B

Previous: $12.8B-21.1%
R&D Expense

$126M

No prior period
Stock-Based Comp

$11.3M

Previous: $16.4M-31.1%

Revenue & EPS history

CommScope · Revenue · Quarterly

$1.6B

Q3 2023-32.8%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

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

  • Aurora segment
    $299M

Forward guidance

CommScope reduced its Core adjusted EBITDA guideposts to a range of $1.00 to $1.05 billion.

Tailwinds

  • Targeting an additional $100 million cost savings by the end of Q1 2024.
  • Liquidity remained strong at more than $1.29 billion.
  • Finished the quarter with a net leverage ratio of 6.7x.
  • Repurchased and retired $26 million of long-term debt for cash consideration of $17 million.
  • Proactively implemented cost savings initiatives that have favorably impacted its profitability in 2023.

Headwinds

  • Weaker demand outlook for the remainder of 2023.
  • Macroeconomic factors have softened demand for CommScope’s products.
  • Customers reducing purchases as they right-size their inventories.
  • Customers pausing capital spending.
  • Expect difficult market conditions to continue over the next few quarters.

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 Q3 2023

Historical avgQ3 2023

-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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