Comtech Telecom Fourth Quarter Earnings Sneak Peek

Comtech Telecomm. Corp. (NASDAQ:CMTL) will unveil its latest earnings on Tuesday, September 20, 2011. Comtech Telecommunications Corporation designs, develops, produces and markets innovative products, systems and services for advanced communications solutions.

Comtech Telecomm. Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 36 cents per share, a decline of 50.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up, but has dropped from 37 cents during the last month. For the year, analysts are projecting profit of $2.16 per share, a decline of 2.3% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 8 cents, reporting net income of 47 cents per share against a mean estimate of profit of 39 cents. In the second quarter, the company exceeded forecasts by 12 cents with net income of 52 cents versus a mean estimate of profit of 40 cents.

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Wall St. Revenue Expectations: On average, analysts predict $141.5 million in revenue this quarter, a decline of 44.9% from the year ago quarter. Analysts are forecasting total revenue of $613.7 million for the year, a decline of 21.1% from last year’s revenue of $778.2 million.

Analyst Ratings: Analysts are bullish on this stock with four analysts rating it as a buy, none rating it as a sell and three rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 34.6% from the year earlier quarter, while the figure dropped 1.5% in the second quarter.

Revenue has fallen in the past two quarters. In third quarter, revenue declined 39.4% to $131.1 million from the year earlier quarter. In the second quarter, the figure fell 4.9%.

Competitors to Watch: ViaSat, Inc. (NASDAQ:VSAT), Globecomm Systems, Inc. (NASDAQ:GCOM), EMS Technologies, Inc. (NASDAQ:ELMG), Harris Corporation (NYSE:HRS), General Dynamics Corp. (NYSE:GD), CalAmp Corp. (NASDAQ:CAMP), PHAZAR CORP. (NASDAQ:ANTP), Motorola Solutions Inc (NYSE:MSI), KVH Industries, Inc. (NASDAQ:KVHI), and Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC).

Stock Price Performance: During June 20, 2011 to September 14, 2011, the stock price had risen $2.73 (10.7%) from $25.63 to $28.36. The stock price saw one of its best stretches over the last year between August 19, 2011 and August 30, 2011 when shares rose for eight-straight days, rising 10.8% (+$2.71) over that span. It saw one of its worst periods between June 6, 2011 and June 13, 2011 when shares fell for six-straight days, falling 13% (-$3.51) over that span. Shares are up $1.33 (+4.9%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.