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Earnings Highlights and Review: Comtech's Strong Q3 Earnings Topped Estimates

Research Desk Line-up: Optical Cable Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 27, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Comtech Telecommunications Corp. (NASDAQ: CMTL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CMTL, following the Company's disclosure of its financial results for the third quarter fiscal 2017 (Q3 FY17) on June 07, 2017. The Melville, New York-based Company's net sales grew on a year-over-year basis and reported positive diluted earnings per share. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:


Get more of our free earnings reports coverage from other constituents of the Communication Equipment industry. Pro-TD has currently selected Optical Cable Corporation (NASDAQ: OCC) for due-diligence and potential coverage as the Company announced on June 13, 2017, its financial results for Q2 2017 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Optical Cable when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CMTL; also brushing on OCC. With the links below you can directly download the report of your stock of interest free of charge at:



Earnings Reviewed

During the three months ended on April 30, 2017, Comtech reported net sales of $127.79 million compared to $124.19 million recorded at the end of Q3 FY16. However, net sales numbers missed market expectations of $135.8 million.

The communications Company reported net income of $4.42 million, or $0.19 per diluted share, in Q3 FY17 against net loss of $14.36 million, or $0.89 loss per diluted share, in the prior year's comparable period. Moreover, excluding the $2.0 million benefit, GAAP diluted EPS would have been $0.13 for the three months ended April 30, 2017. Wall Street had expected the Company to report net income of $0.06 per diluted share.

Operating Metrics

In the reported quarter, Comtech's costs of sales were $75.33 million compared to $72.80 million in the year ago corresponding period. The Company's selling, general, and administrative expenses for Q3 FY17 were $25.92 million compared to $30.44 million in the third quarter of FY16.

Gross profit grew to $52.46 million in Q3 FY17 from $51.39 million in Q3 FY16. The Company's operating income also increased during the reported quarter to $12.96 million from $12.61 million in Q3 FY16. Furthermore, adjusted EBITDA for Q3 FY17 stood at $18.10 million versus $12.46 million in Q3 FY16.

Cash Flow & Balance

During the nine months ended April 30, 2017, Comtech's net cash flow provided by operating activities was $43.68 million compared to $12.27 million in the year ago comparable period. At the close of books on April 30, 2017, Comtech had cash and cash equivalents balance of $58.82 million versus $66.81 million at the close of books on July 31, 2016. Meanwhile, the Company's long-term debt declined to $211.51 million as on April 30, 2017, from $239.97 million as on July 31, 2016.

Divided and Share Buyback

In a separate press release on June 07, 2017, Comtech's Directors declared a quarterly cash dividend of $0.10 per share, payable on August 18, 2017, to shareholders of record at the close of business on July 17, 2017. The Company has paid a dividend is the last twenty-eighth consecutive quarters.

Earnings Outlook

The Company updated its full year FY17 revenue target to a range of $550.0 million to $555.0 million from the previous target of $570.0 million to $580.0 million. The Company also updated the GAAP diluted EPS goal to approximately $0.67 per diluted share. Furthermore, adjusted EBIDTA for full year FY17 is projected to be in the range of $68.0 million to $70.0 million.

Stock Performance

On Monday, June 26, 2017, the stock closed the trading session at $19.29, climbing 2.28% from its previous closing price of $18.86. A total volume of 296.51 thousand shares have exchanged hands, which was higher than the 3-month average volume of 270.91 thousand shares. Comtech Telecommunications' stock price soared 31.40% in the last three months, 65.44% in the past six months, and 56.83% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 62.78%. The stock is trading at a PE ratio of 38.43 and has a dividend yield of 2.07%. At Monday's closing price, the stock's net capitalization stands at $457.17 million.

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SOURCE: Pro-Trader Daily