CommScope Holding Company Inc. (NASDAQ: COMM) saw its stock surge 5.49% in pre-market trading on Friday, following the release of its impressive first-quarter 2025 financial results and the announcement of a stock buyback program.

The telecommunications equipment company reported stellar performance across all its core segments. Core net sales reached $1.112 billion, marking a significant 23% year-over-year increase. More importantly, CommScope's core adjusted EBITDA skyrocketed by 159% compared to the same period last year, hitting $245 million. This strong financial showing represents the fourth consecutive quarter of sequential improvement in adjusted EBITDA.

A standout performer in CommScope's portfolio was its enterprise fiber business, which caters to the booming data center market. This segment saw an impressive 88% year-over-year revenue growth, driven by increasing demand from hyperscale and cloud customers, particularly those focused on AI initiatives. Charles Treadway, President and CEO of CommScope, noted, "Our product revenues are benefiting not just from data center growth rates but from exponential growth in connectivity and cabling requirements as customers move to new generative AI-focused data center architectures."

Adding to investor optimism, CommScope's Board of Directors approved a $50 million stock buyback program. This move signals management's confidence in the company's undervalued equity and potential for future growth. Kyle Lorentzen, CFO, stated, "We feel the equity is significantly undervalued, and our shareholders will benefit from the exceptional value a buyback program at current equity prices will generate."

While the company faces some headwinds, including potential tariff impacts estimated between $10 million to $15 million in the second quarter, management expressed confidence in their ability to mitigate these challenges through their flexible global manufacturing footprint and strategic initiatives. Despite these concerns, CommScope reaffirmed its 2025 adjusted EBITDA guidance range of $1 billion to $1.05 billion, further bolstering investor confidence in the company's outlook.