Shares of CommScope Holding Co. Inc. COMM plunged 17.8% into record-low territory, after the telecommunications networks company warned investors that sales and profitability will disappoint, citing ” low order rates driven by customers continuing to hold higher than required inventories, uncertain macroeconomic environment and slower service provider network capital expenditure spending.” The company expects third-quarter sales of $1.60 billion, which is well below the current FactSet consensus of $1.99. The company expects to report a net loss of $829 million, due primarily to an asset impairment charge of $895 million. Given the lower-than-expected third-quarter results, the company cut its guidance range for 2023 core earnings before interest, taxes, depreciation and amortization (Ebitda) to $1.00 billion to $1.05 billion from $1.15 billion to $1.25 billion. CommScope is slated to report third-quarter results on Nov. 9. The stock, which is on track to open below the Oct. 23 record-low close of $2.24, has plummeted 45.5% over the past three months through Friday, while the S&P 500 SPX has lost 10.1%.
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