Comtech Telecommunications (NASDAQ:CMTL – Get Free Report) issued its quarterly earnings results on Monday, June 15th. The communications equipment provider reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.27) by $0.05, FiscalAI reports. The company had revenue of $106.00 million for the quarter, compared to analysts’ expectations of $110.21 million. Comtech Telecommunications had a positive return on equity of 9.77% and a negative net margin of 5.52%.
Here are the key takeaways from Comtech Telecommunications’ conference call:
- Comtech announced it will sell most of its Satellite and Space business to Gilat for $157.5 million, a move management says completes its strategic alternatives review and sharpens the company’s focus on Allerium.
- The company delivered its fifth consecutive quarter of positive operating cash flow, generating $6.1 million this quarter and maintaining about $50 million of liquidity.
- Financial results reflected the portfolio shift: third-quarter revenue was $106 million, while gross margin improved to 34% from 30.7% a year ago due to product mix and cost reductions. Adjusted EBITDA was $8.2 million, down year over year mainly because of the prior-year retroactive billing benefit at Allerium.
- Management said the transaction and related amendments will strengthen the balance sheet, with expected net cash proceeds of roughly $143 million to $145 million used to pay down senior and subordinated debt and improve financial flexibility.
- Allerium is now the company’s core growth focus, and executives highlighted momentum in NextGen 911, including Kentucky’s statewide rollout, Canadian upgrades, and new contract wins that support a recurring, software- and services-led business model.
Comtech Telecommunications Price Performance
Shares of CMTL stock traded down $0.12 during trading hours on Tuesday, hitting $1.84. The company had a trading volume of 384,830 shares, compared to its average volume of 437,040. Comtech Telecommunications has a 12 month low of $1.80 and a 12 month high of $6.21. The firm has a market capitalization of $55.13 million, a price-to-earnings ratio of -0.83 and a beta of 1.51. The firm’s fifty day moving average is $3.70 and its 200 day moving average is $4.42. The company has a debt-to-equity ratio of 4.02, a quick ratio of 1.19 and a current ratio of 1.61.
Analyst Ratings Changes
View Our Latest Analysis on CMTL
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of the business. QVT Financial LP lifted its holdings in Comtech Telecommunications by 39.5% during the 2nd quarter. QVT Financial LP now owns 984,354 shares of the communications equipment provider’s stock worth $2,412,000 after buying an additional 278,581 shares in the last quarter. Marshall Wace LLP lifted its stake in shares of Comtech Telecommunications by 91.4% in the 4th quarter. Marshall Wace LLP now owns 735,775 shares of the communications equipment provider’s stock valued at $3,892,000 after purchasing an additional 351,318 shares during the period. MML Investors Services LLC lifted its stake in shares of Comtech Telecommunications by 28.0% in the 4th quarter. MML Investors Services LLC now owns 410,596 shares of the communications equipment provider’s stock valued at $2,172,000 after purchasing an additional 89,755 shares during the period. Geode Capital Management LLC raised its stake in Comtech Telecommunications by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 338,589 shares of the communications equipment provider’s stock worth $1,792,000 after buying an additional 3,411 shares during the period. Finally, Two Sigma Investments LP raised its stake in Comtech Telecommunications by 71.4% during the 3rd quarter. Two Sigma Investments LP now owns 256,607 shares of the communications equipment provider’s stock worth $662,000 after buying an additional 106,866 shares during the period.
About Comtech Telecommunications
Comtech Telecommunications Corporation (NASDAQ:CMTL), founded in 1969 and headquartered in Melville, New York, is a leading global provider of advanced communications solutions. The company designs, develops, and deploys equipment, systems, and services that enable secure and reliable transmission of voice, video, and data. Over its history, Comtech has built a reputation for innovation across satellite communications, wireless data systems, and public safety networks, serving both commercial and government customers worldwide.
Comtech operates through two primary business segments: Commercial Solutions and Government Solutions.
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