CommScope (NASDAQ: COMM) reported Q2 EPS of $0.68, $0.03 better than the analyst estimate of $0.65. Revenue for the quarter came in at $1.24 billion versus the consensus estimate of $1.23 billion.

Second Quarter 2018 Performance

• Sales of $1.24 billion, up 6 percent year over year
• GAAP operating income of $165 million
• Non-GAAP adjusted operating income (excluding special items) of $251 million
• GAAP net income of $0.34 per diluted share
• Non-GAAP adjusted net income (excluding special items) of $0.68 per diluted share, up 13 percent year over year and at high end of guidance range

“We are pleased to deliver solid second quarter results, which reflect our team\'s focus on capitalizing on growth opportunities in our core markets while managing costs effectively,” said President and Chief Executive Officer Eddie Edwards. “The strong year-over-year growth in North America in our Mobility segment and Outdoor Network Solutions business reflects our industry-leading technology, scale and customer relationships.

“We remain committed to identifying and pursuing opportunities to drive solid growth in core and adjacent markets through innovation and accretive acquisitions. We are confident that the continued prudent investment in our business, strategic allocation of capital toward accretive M&A and a focus on operational efficiency will enable us to deliver continued growth and value to shareholders. Our platform of world-class, differentiated solutions and services continues to set CommScope apart.”

Outlook

CommScope management issued third quarter 2018 guidance and reaffirmed its guidance range for the full year 2018.

Third Quarter 2018 Guidance:

• Revenue of $1.19 billion – $1.24 billion
• Operating income of $145 million – $169 million
• Non-GAAP adjusted operating income of $225 million – $250 million
• Non-GAAP adjusted effective tax rate of approximately 29 percent – 30 percent
• Earnings per diluted share of $0.41 – $0.45, based on 195 million weighted average diluted shares
• Non-GAAP adjusted earnings per diluted share of $0.63 – $0.68

Full Year 2018 Guidance:

• Revenue of $4.675 billion – $4.825 billion
• Operating income of $540 million – $585 million
• Non-GAAP adjusted operating income of $870 million – $920 million
• Non-GAAP adjusted effective tax rate of 29 percent – 30 percent
• Earnings per diluted share of $1.18 – $1.30, based on 196 million weighted average diluted shares
• Non-GAAP adjusted earnings per diluted share of $2.33 – $2.48
• Cash flow from operations > $550 million

GUIDANCE:

CommScope sees FY2018 EPS of $2.33-$2.48, versus the consensus of $2.39. CommScope sees FY2018 revenue of $4.675-4.825 billion, versus the consensus of $4.75 billion.

For earnings history and earnings-related data on CommScope (COMM) click here.