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Thursday, December 5, 2019
Comtech Telecommunications Corp. (CMTL)
Strong Q1; Can The Momentum Be Maintained?
Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long-distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs develop, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to full report for the price target, fundamental analysis, and rating.
1Q20 Results. Revenue of $170.3 million, EPS of $0.26, and Adjusted EBITDA of $20.6 million all exceeded our forecasts of $168 million, $0.15, and $17.8 million, respectively. In 1Q19, revenues were $160.8 million, EPS $0.14, and adjusted EBITDA $18.0 million. Adjusted EPS totaled $0.32 compared to $0.22 last year. Strong results from the Commercial Solutions segment drove quarterly results.
Contract Wins and Acquisitions Driving Results. New contract wins, such as the $98.6 million Army contract announced in October, the $325 million, 10-year troposcatter award for the U.S. Marines, and…
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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