CommScope Shares Plunge as Loss Widens in Q2

Shares of CommScope took a significant hit on Thursday as the company reported a widened loss in the second quarter and a decline in sales.

The stock was down 27% to $3.23 in midday trading, reaching an all-time low. Year-to-date, the shares have fallen by 57%.

CommScope, a network connectivity company based in Hickory, N.C., posted a second-quarter loss of $100.4 million, or 55 cents per share. This is compared to a loss of $61 million, or 36 cents per share, in the same period last year. Analysts polled by FactSet were only expecting a loss of 14 cents per share.

The company's sales also suffered, falling by 17% to $1.92 billion. This missed the analysts' forecast of $2.03 billion.

CommScope attributed the disappointing results to larger-than-expected customer inventory corrections and spending reductions. It appears that higher interest rates, inflation concerns, and worries of a recession have caused customers to hold back.

While uncertainties persist, Chief Executive Chuck Treadway expressed caution about the demand for the rest of the year.