Rodman & Renshaw analyst Daniel Ernst maintained his "market perform" rating on CommScope Inc. after the company reported second-quarter results that were slightly better than his estimates.
CommScope reported revenue of $141.4 million, up 9% sequentially and 1% above Ernst's estimate. Core broadband cable revenue grew 7% sequentially, but sales to Comcast Corp. — which accounted for 17% of purchases — were down compared to the first quarter. In his report, Ernst said CommScope believes the typically strong third quarter would be flat at best.
"While CommScope is a proven steady cash generator, industry conditions will limit growth over the medium term," Ernst wrote.