Comtech Telecommunications Corp. Earnings Cheat Sheet: Revenue and Profit Decline

Comtech Telecommunications Corp. (NASDAQ:CMTL) posted a decrease in profit as revenue declined. Comtech Telecommunications designs, develops, produces, and markets innovative products, systems, and services for advanced communications solutions.

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Comtech Telecommunications Corp Earnings Cheat Sheet for the First Quarter

Results: Net income for Comtech Telecommunications Corp. fell to $12.6 million (47 cents per share) vs. $25.7 million (79 cents per share) a year earlier. This is a decline of 50.9% from the year earlier quarter.

Revenue: Fell 36.3% to $113.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CMTL reported adjusted net income of 41 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. It beat the average revenue estimate of $93.5 million.

Quoting Management: Fred Kornberg, President and Chief Executive Officer, stated, “Despite extraordinarily volatile market conditions, we believe that our market leadership positions are firmly intact. During the first quarter, our business, excluding revenues related to the MTS and BFT-1 programs, achieved revenue growth of approximately 6.4% as compared to the first quarter of last year and we are extremely pleased with this achievement.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the fourth quarter of the last fiscal year, net income fell 11.7% while the figure fell 34.6% in the third quarter of the last fiscal year and 1.5% in the second quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the fourth quarter of the last fiscal year, by 8 cents in the third quarter of the last fiscal year, and by 12 cents in the second quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 45.4% to $140.3 million in the fourth quarter of the last fiscal year. The figure fell 39.4% in the third quarter of the last fiscal year from the year earlier and dropped 4.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company boosted its gross margin by 9.2 percentage points. Revenue fell 36.3% while cost of sales fell 45.5% to $62.1 million from a year earlier.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 29 cents per share from 27 cents. For the fiscal year, the average estimate has moved up from $1.06 a share to $1.24 over the last ninety days.

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 Performance: Shares of CMTL were down 1.6% from the previous close.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)