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Comtech Gets Additional U.S. Army Funding for SNAP Terminals

Zacks Equity Research

Comtech Telecommunications Corp. CMTL recently announced that its Command & Control Technologies group (which is part of the company’s Government Solutions segment) got additional funding of $9.2 million on a previously announced three-year $124.2 million contract. This financial happening took place during Comtech’s fourth-quarter fiscal 2019.

Per the contract, which has been funded $74.9 million to date, the company is providing sustainment services for the AN/TSC-198A SNAP (Secret Internet Protocol Router and Non-classified Internet Protocol Router Access Point), and baseband equipment. Markedly, SNAP terminals offer rapid mobile satellite communications capabilities to personnel in the field.

Comtech’s Command & Control Technologies group is known to be a leading provider of mission-critical, highly-mobile C4ISR (Command, Control, Communications, Computer, Intelligence, Surveillance, and Reconnaissance) solutions. This additional funding underscores that U.S. Army continues to trust the company as a preferred service provider for its deployed soldiers.

Comtech sells products to a diverse customer base in the global commercial and government communications markets. Moreover, the acquisitions of Solacom and the GD NG-911 business significantly enhanced its ability to deliver innovative market-leading products and services to public safety agencies.

Backed by positive business momentum including strong backlog, Comtech’s shares have added 23.1% compared with the industry’s growth of 10.9% in the past six months.

The company has long-term earnings growth expectation of 5%. It beat earnings estimates in each of the trailing four quarters, with an average surprise of 216.7%.

Zacks Rank & Stocks to Consider

Comtech currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Ubiquiti Inc. UI, Nokia Corp. NOK and Sonim Technologies, Inc. SONM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ubiquiti has long-term earnings growth expectation of 9%.

Nokia surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 89.3%.

Sonim has long-term earnings growth expectation of 25%.

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