NASDAQ$VISN

Vistance Networks Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

CommScope reported mixed results with increased net sales but decreased profitability due to supply chain constraints and inflationary pressures.

CommScope's Q4 2021 results showed a 4.3% increase in net sales year-over-year, reaching $2.224 billion. However, the company experienced a GAAP net loss of $87.1 million, and a decrease in non-GAAP adjusted EBITDA to $260.6 million, reflecting the impact of supply chain issues and inflation. The company is implementing CommScope NEXT initiatives to address these challenges.

  • Net sales increased by 4.3% year-over-year, reaching $2.224 billion.
  • Core net sales increased by 12.8% year-over-year, driven by Outdoor Wireless Networks and Venue and Campus Networks.
  • GAAP net loss was $87.1 million, compared to a net income of $23.9 million in the prior year period.
  • Non-GAAP adjusted EBITDA decreased by 28.1% to $260.6 million.

Headline financials

Total Revenue

$2.22B

Previous: $2.13B+4.3%
EPS (adj)

$0.31

Previous: $0.59-47.5%
Capital Expenditures

$35.2M

Previous: $47.7M-26.2%
Free Cash Flow

-$26.9M

Previous: $50M-153.8%
Net Income

-$87.1M

Previous: $23.9M-464.4%
Operating Income

$37.1M

Previous: $119M-68.8%
Gross Profit

$686M

Previous: $715M-4.1%
Cash & Equivalents

$360M

Previous: $522M-31.0%
Total Assets

$13.3B

Previous: $13.6B-2.3%
Stock-Based Comp

$18.6M

Previous: $25M-25.6%

Revenue & EPS history

CommScope · Revenue · Quarterly

$2.22B

Q4 2021+4.3%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

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

  • Aurora segment
    $299M

Forward guidance

CommScope anticipates continued supply chain constraints and inflationary challenges into 2022. The company expects Q1 2022 to be sequentially lower than Q4 2021 but confirms its 2022 Core Adjusted EBITDA to be within the range of $1.15 billion to $1.25 billion.

Tailwinds

  • Anticipate 2022 Core Adjusted EBITDA to be within the range of $1.15 billion to $1.25 billion.
  • Implementing CommScope NEXT strategy to optimize enterprise pricing.
  • Streamlining cost-intensive processes to drive greater overall efficiency.
  • Reorganizing business structure in 2022 to align its portfolio of products and solutions more closely with the markets it serves.
  • Expect to see continued improvement from the first quarter.

Headwinds

  • Expect the first quarter of 2022 to be sequentially lower than the fourth quarter of 2021.
  • Ongoing impact of supply chain pressures on the Home Networks business.
  • Semiconductor supply decommits and extended component lead times.
  • Market conditions are not currently conducive to proceeding with the planned spin-off of Home Networks.
  • Expect certain unfavorable impacts to continue into 2022 due to supply shortages and extended lead times.

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 2021

Historical avgQ4 2021

-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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