COMM - CommScope tumbles 23% despite solid Q3 beat

CommScope ( NASDAQ: COMM ) has slid 22.9% after it posted third-quarter earnings Thursday - a report with some generally solid execution that beat expectations.

Trading volume in the stock has already crested 7M shares, already well over double typical daily volume.

Revenues grew by 13% to $2.38B and easily best consensus, while core net sales got a boost of nearly 18%.

Meanwhile, the company swung from a hefty GAAP loss a year ago (-$124.2M) to net income of $22.9M.

The company delivered core adjusted EBITDA of $353M, its best total since completing an acquisition of Arris.

That sell-off may be coming from investors disappointed that there isn't a stronger backing for the company's guidance, which didn't see an update in the report.

“While investors will be pleased to see another quarter of solid execution in a challenging macro backdrop, we believe investors might be somewhat disappointed at the lack of update to CommScope’s reiterated guide," says J.P. Morgan's Samik Chatterjee, while noting that might just be conservatism on the company's part.

CommScope alluded to remaining supply chain challenges and macro uncertainty while maintaining an expectation to deliver full-year core adjusted EBITDA in the range of $1.15B-$1.25B, and $1.35B-$1.5B for full-year 2023.

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