COMM - Embedded Expectations Analysis - 2019 10 29
CommScope Holding Company (COMM:USA) currently trades below recent averages relative to Uniform Earnings, with an 18.2x Uniform P/E, implying bearish expectations for the firm, and management may be concerned about capex, EBITDA, and their Asian operations.Specifically, management may be concerned about the impact of their reduction in capex spend and about their ability to adapt to the challenging near-term operating environment. Moreover, they may lack confidence in their ability to take advantage of 5G-related tailwinds in the communication industry, and they appear concerned about the impact of recent shrinkage in their Asia-Pacific operations. Finally, management may be concerned about the sustainability of recent EBITDA growth, and they may lack confidence in their ability to shift their production to avoid the impact of Chinese tariffs.
CommScope Holding is a provider of infrastructure solutions for communication networks. The company's solutions and services for wired and wireless networks enable high-bandwidth data, video and voice applications. The company's operating segments are: CommScope Connectivity Solutions (CCS) and CommScope Mobility Solutions (CMS). The CCS segment is engaged in providing fiber optic and copper connectivity solutions for use in data centers and business enterprise, telecommunications, cable television and residential broadband networks. The CMS segment is engaged in providing infrastructure for wireless networks.
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