Comtech Telecommunications Earnings: Here’s Why the Stock is Rising Now

Comtech Telecommunications Corp. (NASDAQ:CMTL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.96%.

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Comtech Telecommunications Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 41.38% to $0.17 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Decreased 29.95% to $69.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Comtech Telecommunications Corp. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.04. It missed the average revenue estimate of $77.74 million.

Quoting Management: In commenting on the Company’s performance and updated fiscal 2013 guidance, Fred Kornberg, President and Chief Executive Officer, stated, “Despite difficult market conditions, we are pleased with our overall third quarter results, particularly the receipt of several strategically important new contracts. For the first time this fiscal year, our quarterly book-to-bill ratio exceeded 1.0, and we expect the same to be the case in the fourth quarter.”

Key Stats (on next page)…

Revenue decreased 6.28% from $74.58 million in the previous quarter. EPS increased 21.43% from $0.14 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.42 to a profit $0.29. For the current year, the average estimate has moved down from a profit of $1.26 to a profit of $0.82 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)