Claremont-based CommScope shares surged 9.1%, advancing into positive territory for the year after Bloomberg News reported the debt-laden company is exploring the sale of its broadband connectivity and cable solutions division.
Selling the unit may fetch as much as $10 billion, according to Bloomberg, reporting CommScope has contacted private industry firms and industry players. It also engaged an adviser to explore interest in buying the entire company, Bloomberg said, citing people familiar with the matter.
Today was the first trading day since the news report Friday, May 23. The stock gained 52 cents to $6.22 a share after sinking to a yearly low five weeks ago amid uncertainty about the global tariff war.
The shares got a lift May 1 when CEO Chuck Treadway told analysts on CommScope’s quarterly earnings call the company believes it “can manage the uncertainty” around tariffs between the U.S. and its trading partners. The company maintained its full-year forecast for adjusted earnings of $1 billion to $1.05 billion.
First-quarter results improved from a year earlier, according to a statement. Adjusted earnings totaled $245.2 million, up 159% from $94.6 million, on sales that climbed 23.5% to $1.11 billion from $900.9 million.
Its largest unit, broadband connectivity more than doubled adjusted earnings to $182.1 million from $97.4 million a year earlier. The unit’s sales rose nearly 20% to $724.1 million in the three months ended March 31 from $604.7 million.
Earlier today, CommScope didn’t respond to a request for comment about the possible sale of the broadband connectivity unit or the company as a whole. According to Bloomberg, the discussions are in the early stages, with no guarantee they will result in a transaction.
This past December, under pressure from debt-weary investors, the company arranged $4.15 billion in two new loans from first-lien lenders. The refinancing pushed back debt maturities and enabled the repayment of the company’s senior unsecured notes and senior secured term loan facility.
In February, CommScope completed the previously announced sale of its Outdoor Wireless Networks segment and the Distributed Antenna Systems business units to Amphenol Corp. Proceeds of $2.1 billion further reduced debt.
As of March 31, the company’s long-term debt totaled $7.24 billion, down from $9.24 billion at the end of 2024, according to a securities filing.
