CommScope posts profit; revenue misses
HICKORY, N.C. (AP) – CommScope Inc.'s shares fell nearly 5 percent in extended trading Monday after the company reported disappointing quarterly revenue and a weaker-than-expected forecast.
The company, which makes communications cables, reported earnings that were in line with Wall Street's forecasts. But the revenue numbers apparently weighed on the stock.
Shares fell $1.36, or 4.9 percent, to $26.22 in extended trading, after the results were reported. They had fallen 12 cents, or 0.4 percent, to $27.58 during the regular trading session.
The company said it earned $37.1 million, or 37 cents per share, in the last three months of 2009. That compares with a loss of $342.4 million, or $4.86 per share, in the same period a year ago, which was caused by heavy charges for write-downs to the value of CommScope's businesses.
Excluding items, the company earned 53 cents per share in the latest period. That matched the average estimate of analysts polled by Thomson Reuters.
Revenue fell 13 percent to $748.5 million, short of analysts' expectation for $764 million.
For all of 2009, the company earned $77.8 million, or 86 cents per share, on revenue of $3 billion.
The company said it expects revenue of $700 million to $730 million in the first quarter of 2010. That was short of the $752 million that analysts were expecting.
Jearld Leonhardt, the company's chief financial officer, said the company should return to "more normal business practices" this year after cutting spending and jobs last year.
"We expect business to improve as we move through the year and expect sales in the second half of 2010 to be stronger than sales in the first half of the year," Leonhardt said. "We continue to believe that we are well positioned to benefit from the ongoing build-out of wireless and wireline networks."