CommScope to Head into Transitional Period?

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By Jody McCoy

While an already anticipated softer 1H15 carrier spending backdrop is likely to make 2Q actual results largely a non-event, 3Q is likely to emerge as a transition period for CommScope,” Amir Rozwadowski of Barclays noted. CommScope helps companies around the world design, build and manage their wired and wireless networks in large buildings, venues, outdoor spaces, data centers, wireless cell sites, airports, trains, and tunnels. “Following discussions from across the telco food chain, we continue to believe a U.S. organic recovery remains a ‘when’ rather than ‘if’ story,” Rozwadowski explained. “2015 capex reiteration by the big four wireless operators should be the first indication supporting a building 2H recovery (Verizon already kicked off this trend [Monday] as its guidance implies a 18% 2H pick up). Tempered near-term trends during what should prove to be an abbreviated transition period are likely to serve as a modest headwind in what should play out to be a multi-tier positive earnings revision story over the mid-to-longer term.”

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