Comtech Telecommunications Corp (CMTL) research, news, and more from GeoInvesting

Company description

Wed, 30 Jul 2008 04:00:00 GMT

Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company believes many of its solutions play a vital role in providing or enhancing communication capabilities when terrestrial communications infrastructure is unavailable or ineffective. The Company conducts business through three complementary segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. The Company sells products to a diverse customer base in the global commercial and government communications markets. The Company believes it is a market leader in the market segments that it serves.

Research

Fri, 13 Oct 2023 14:36:48 GMT

Comtech Telecommunications Corp (NASDAQ:CMTL) ($8.14; $226.9M market cap) (marked up 15% pre market), a company that designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally, reported Q4 2023 results:

Sales of $148.8 million vs $126.9 million in the prior year and ahead of analyst estimates of $140.1 million
Company reported adjusted EPS of $0.29 vs $0.24 in the prior year and ahead of analyst estimates of $0.17

While we are looking into the way the Company calculates its adjusted EPS, we encourage you to read the shareholder letter in the annual report that discusses the transformation the company is going through which they believe will translate to growing top and bottom line moving forward.

The company also announced that It will be selling one of its assets for $40 million. The transaction is also discussed in the shareholder letter.

“entered into a definitive agreement under which Stellant will acquire Comtech’s Power Systems Technology (PST) product line for a total cash purchase price of $40 million, which includes a preliminary sales price of $35 million and contingent consideration up to $5 million based on the achievement of certain targets.”

“We intend to use the net proceeds from this transaction to meaningfully reduce our outstanding debt, de-lever the balance sheet, reduce cash interest requirements, and provide flexibility to achieve our near-term strategic goals.”

Current analyst EPS estimates for fiscal 2024 and 2025 are $0.80 and $1.28 respectively.

At the current stock price, shares are selling at a price to earnings ratio of 14.7 using company adjusted full year EPS of $0.65 and 10 on 2024 analyst estimates. Our immediate goals are to determine:

If the company will be strengthening its balance sheet as it just did with its asset sale
How much revenue and earnings will the company lose from asset sale?
Do we agree with the company's adjusted earnings per share calculations?

Comments & Business Outlook

Fri, 24 Sep 2010 04:00:00 GMT

In commenting on the Company's performance and business outlook, Fred Kornberg, President and Chief Executive Officer, stated, "Our fourth quarter and fiscal 2010 results were strong and benefited significantly from the timing of shipments of multiple large orders from the U.S. Army. Although our fiscal 2011 guidance reflects lower sales relating to these orders, all of our other product lines are expected to show year-over-year growth." Mr. Kornberg added, "We believe that business conditions are slowly improving and are excited about our long-term business prospects."