Comtech shares jump on solid 2010 outlook

Comtech shares jump on better-than-expected 2010 sales forecast

• On 2:25 pm EDT, Thursday September 24, 2009

NEW YORK (AP) -- Shares of Comtech Telecommunications Corp. jumped Thursday after the telecommunications company gave a better-than-expected revenue forecast for this fiscal year.

Comtech said during a conference call with analysts Wednesday it expects a profit of $2.10 to $2.20 for fiscal 2010, which ends in July. The company also forecast revenue in the range of $820 million to $840 million.

Analysts, on average, are expecting a profit of $2.03 per share on sales of $795.8 million, according to a poll by Thomson Reuters.

Comtech also said it expects revenue and earnings for the current quarter to be similar to its results for the fiscal fourth quarter.

For the three months ended July 31, the company earned $6.1 million, or 21 cents per share, on sales of $122 million.

Collins Stewart analyst James McIlree, who rates Comtech "Buy" with a target price of $50, said he expects "a stronger-than-anticipated economic recovery and increased war efforts in Afghanistan" to boost the company's results.

Shares of the Melville, N.Y.-based company rose $2.26, or 6.6 percent, to $36.34 in afternoon trading. In the past 52 weeks, the stock has traded between $19.56 and $50.55.