NASDAQ$VISN

Vistance Networks Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

CommScope reported strong Q4 results, with bottom-line growth year over year and sequentially, driven by Broadband Networks momentum and the introduction of "CommScope NEXT" to drive future growth.

CommScope reported Q4 2020 results with net sales of $2.132 billion and a GAAP net income of $23.9 million, or $0.05 per share. Non-GAAP adjusted EBITDA increased 11.9% to $362.2 million. The company highlighted the continued momentum in Broadband Networks with a 17.3% annual increase in net sales and introduced "CommScope NEXT" to drive future growth and optimize business processes.

  • Net sales reached $2.132 billion.
  • GAAP net income was $23.9 million.
  • Non-GAAP adjusted EBITDA totaled $362.2 million.
  • Broadband Networks experienced 17.3% annual increase in net sales.

Headline financials

Total Revenue

$2.13B

Previous: $2.3B-7.3%
EPS (adj)

$0.59

Previous: $0.46+28.3%
Capital Expenditures

$47.7M

Previous: $31.8M+50.0%
Free Cash Flow

$50M

Previous: $304M-83.6%
Net Income

$23.9M

Previous: -$437M+105.5%
Operating Income

$119M

Previous: -$339M+135.1%
Gross Profit

$715M

Previous: $736M-2.9%
Cash & Equivalents

$522M

Previous: $598M-12.8%
Total Assets

$13.6B

Previous: $14.4B-5.9%
Stock-Based Comp

$25M

Previous: $32.1M-22.1%

Revenue & EPS history

CommScope · Revenue · Quarterly

$2.13B

Q4 2020-7.3%vs Q4 2019
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 is focused on reducing costs, generating cash flow, reducing leverage, and reinvesting in core strategic markets and technologies to capitalize on significant growth opportunities.

Tailwinds

  • Implement CommScope NEXT to evaluate opportunities to reduce costs across the business.
  • Generate cash flow.
  • Reduce leverage as quickly as possible.
  • Reinvest in core strategic markets.
  • Reinvest in technologies to capitalize on significant growth opportunities.

Headwinds

  • The past year presented many unexpected challenges for the entire economy.
  • COVID-19 incremental costs negatively impacted fourth-quarter 2020 non-GAAP adjusted EBITDA by approximately $10 million.
  • COVID-19 supply chain disruptions negatively impacted 2020 non-GAAP adjusted EBITDA by approximately $70 million.
  • Net sales declined primarily due to year over year decreases in the Home Networks and Venue and Campus Networks segments.
  • The company experienced declines in Home Media Solutions and RUCKUS Networks.

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 Q4 2020

Historical avgQ4 2020

-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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