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Comtech Telecommunications reports strong third quarter boosted by military orders

The telecom signed a US$59mln contract with the US Navy to provide satellite modems
Military satellite
Net income nearly doubled to US$8.2mln in the most recent quarter

Comtech Telecommunications Corp (NASDAQ:CMTL) released fiscal third-quarter earnings that were boosted by strong military orders.

The telecom company booked earnings of US$0.34 per share on revenue of US$147.85mln compared with US$0.19 EPS on revenue of US$127.79mln in the previous year’s third quarter.

The New York-based company beat Wall Street earnings estimates of US$0.12 EPS.

READ: Comtech shares slide to offer price of $14

For its yearly guidance, Comtech maintained its revenue forecast between US$570mln and US$585mln but increased its earnings estimate to a range of US$1.17 and US$1.23 compared with its previous guidance between US$1.08 to US$1.23.

"Our results for the third quarter exceeded our expectations and our pipeline of opportunities remains strong,” said CEO Fred Kornberg in a press release. “As we begin to look to fiscal 2019, we believe that we are firmly positioned for growth."

Net income nearly doubled in the quarter to US$8.2mln compared with US$4.4mln in the prior year’s third quarter.

The company signed several contracts and orders with the U.S. military, including a US$59mln contract to provide the U.S. Navy with satellite modems and services as well as a US$14.2mln order to supply the U.S. Army with a specialty satellite communications system.

Comtech’s board declared a quarterly cash dividend of US$0.10 per share payable on August 17, 2018 to shareholders of record at the close on July 16, 2018, according to a press release.

Shares of the telecom fell more than 3% to US$31.30 in midday trading Thursday.

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