Proactive Investors - Run By Investors For Investors

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.

View full CMTL profile View Profile

Comtech Timeline

Related Articles

Data stream
The telecommunications firm provides fixed line calls, line rental, telephony, and broadband to business and residential customers

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use