CommScope (NASDAQ: COMM) reported Q4 EPS of $0.51, $0.08 better than the analyst estimate of $0.43. Revenue for the quarter came in at $1.0577 billion versus the consensus estimate of $1.06 billion.

Fourth Quarter 2018 Performance

• Sales of $1.06 billion
• GAAP operating income of $49 million
• Non-GAAP adjusted operating income (excluding special items) of $179 million
• GAAP net loss of $(0.12) per share
• Non-GAAP adjusted EPS (excluding special items) increased 9% year over year to $0.51 per diluted share

“We are pleased to deliver fourth-quarter results at the high end of our expectations. Our positive results reflected stronger than anticipated sales volumes and favorable product and geographic mix, as well as our ongoing cost reduction initiatives,” said President and Chief Executive Officer Eddie Edwards.

“While we continue to expect near-term challenges, we remain focused on closing the acquisition of ARRIS and are excited about the value creation potential of this highly strategic combination. Our strong market positioning, excellent customer relationships and differentiated solutions and services will be immediately strengthened with the ARRIS acquisition. We are also confident that it will further enable CommScope to capitalize on industry trends including network convergence, fiber and mobility everywhere, 5G and Internet of Things. We expect the combined company to drive profitable growth in new markets and shape the future of wired and wireless communications while delivering enhanced value to shareholders for years to come.”

GUIDANCE:

CommScope sees Q1 2019 EPS of $0.41-$0.46, versus the consensus of $0.43. CommScope sees Q1 2019 revenue of $1.055-1.105 billion, versus the consensus of $1.07 billion.

CommScope sees FY2019 EPS of $2.10-$2.25, versus the consensus of $2.14. CommScope sees FY2019 revenue of $4.505-4.655 billion, versus the consensus of $4.53 billion.

First Quarter 2019 Guidance:

• Revenue of $1.055 billion – $1.105 billion
• Operating income of $91 million – $113 million
• Non-GAAP adjusted operating income of $167 million – $192 million
• Non-GAAP adjusted effective tax rate of approximately 30% – 31%
• Earnings per share of $0.10 – $0.13, based on 196 million weighted average diluted shares
• Non-GAAP adjusted earnings per diluted share of $0.41 – $0.46, based on 196 million weighted average diluted shares

Full Year 2019 Guidance:

• Revenue of $4.505 billion – $4.655 billion
• Operating income of $516 million – $563 million
• Non-GAAP adjusted operating income of $805 million – $855 million
• Non-GAAP adjusted effective tax rate of 30% – 31%
• Earnings per diluted share of $0.92 – $1.03, based on 196 million weighted average diluted shares
• Non-GAAP adjusted earnings per diluted share of $2.10 – $2.25, based on 196 million weighted average diluted shares
• Cash flow from operations of more than $500 million

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