ARRIS Group's (NASDAQ:ARRS) CMTS Revenue Growth to Resume in Third Quarter

With expectations CMTS and Video IP will resume growth in the third quarter for ARRIS Group (NASDAQ:ARRS), UBS raised their estimates on both segments.

UBS says, "We expect ARRS CMTS revs to resume YoY growth in 3Q11 after falling -30% in 2010 and -23% in 1H11 after large capacity purchases by US MSOs in 2009. Easier comps and ongoing strong traffic growth should lead to a return to normalized growth of 10%+ in 2012, and we thus raise our 2012 CMTS growth estimate to 10% from prior est of 2% decline...Our new ests for ARRS FY12 Rev/Non-GAAP EPS are $1.24B/$1.00, up from $1.14B/$0.79 before."

UBS reiterates a "Neutral" rating on ARRIS Group (ARRS), which closed Wednesday at $12.51, down $0.06, or 0.48 percent. UBS raised their price target on ARRIS from $10.40 to $13.