U.S. Markets open in 59 mins

Comtech (CMTL) Unit Secures Additional Funding From US Army

Zacks Equity Research
1 / 2

Comtech (CMTL) Unit Secures Additional Funding From US Army

Comtech Telecommunications (CMTL) secures additional funding to provide satellite terminals and networking equipment to the U.S. Army.

Comtech Telecommunications Corp. CMTL recently announced that Command & Control Technologies group, part of its Government Solutions segment, secured additional funding of $5.4 million on orders totaling $123.6 million from the U.S. Army. Per the deal received during first-quarter fiscal 2019, the company will provide satellite terminals and networking equipment.

The Command & Control Technologies group provides mission-critical, highly-mobile C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions. To date, $38.9 million worth of the total contract value has been funded. With the deal, the company has strengthened its long-standing business relationship with the U.S. Army.  

Comtech has created a niche market for highly secure wireless solutions to defend global security and improve public safety. The company continues to provide market-leading products for messaging, location and deployable wireless communications. It offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to users.

Customers depend on Comtech’s commercial wireless applications, which are based on innovative mobile cloud computing services like text messaging, public safety solutions, hyper-local search, workforce tracking, social applications, and telematics and navigation.

Federal government agencies also depend on Comtech’s cyber security expertise, professional consulting services and highly secure deployable satellite solutions for mission-critical communications. Earnings estimates of the company have been revised up by 26.3% in the past 30 days to 96 cents, representing bullish investor sentiments about its long-term growth.

With diligent execution of operational plans, Comtech has outperformed the industry in the past year with an average return of 48.1% compared with 18.9% gain for the latter.



Comtech currently sports a Zacks Rank #1 (Strong Buy). Some other stocks in the broader industry worth considering are Ubiquiti Networks, Inc. UBNT, sporting a Zacks Rank #1, Harris Corporation HRS and Ribbon Communications Inc. RBBN, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti has a long-term earnings growth expectation of 18.6%. It delivered an average positive earnings surprise of 9% in the trailing four quarters.

Harris has a long-term earnings growth expectation of 6%. It has trumped earnings estimates in each of the trailing four quarters with an average positive surprise of 6.4%.    

Ribbon has a long-term earnings growth expectation of 12%. It surpassed earnings estimates in each of the trailing four quarters, delivering a stellar average positive surprise of 168.1%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ubiquiti Networks, Inc. (UBNT) : Free Stock Analysis Report
 
Harris Corporation (HRS) : Free Stock Analysis Report
 
Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report
 
Sonus Networks, Inc. (RBBN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research