Thursday, March 7, 2019

Comtech Telecommunications (CMTL)

Exceeds 2Q Expectations, Raises Full Year, With Potential Upside. Another Acquisition?

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. 

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.  

• Strong 2Q19 Operating Results. Net sales jumped 22.7% to $164.1 million, with Adjusted EBITDA of $23.2 million,  up 60.0%. GAAP EPS came in at $0.32 and adjusted EPS was $0.40. 2Q19 results exceed our, and management’s, expectations. Business momentum remains strong and the pipeline of opportunities continues to increase.
• FY2019 Targets Raised. Full year FY2019 revenue expectations now in the $645-$660 million range and Adjusted EBITDA in the $85-$89 million range. Compares to prior guidance of $625-$640 million and $84-$88 million, respectively. Notably, resu…

  
  

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*Analyst certification and important disclosures included in full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.