Comtech (CMTL) To Report Q4 Earnings: What's In The Offing?
Zacks Investment Research | Sep 23, 2019 08:27AM ET
Comtech Telecommunications Corp. (NASDAQ:CMTL) is scheduled to report fourth-quarter fiscal 2019 results (ended Jul 31, 2019) after the closing bell on Sep 24.
In the last reported quarter, the company delivered positive earnings surprise of 100%. Notably, Comtech surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 216.7%.
Factors at Play
Comtech’s acquisition of Solacom and the GD NG-911 business has significantly enhanced its ability to deliver innovative market-leading products and services to public safety agencies worldwide.
In May 2019, Comtech’s Command & Control Technologies group, which is part of its Government Solutions segment, got additional funding worth $14.7 million from the U.S. Army. The company is providing Very Small Aperture Terminals to support the capabilities of warfighters.
The Command & Control Technologies group provides highly-mobile C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions to help bridge the security gap in an era of information-based, network-centric warfare. The Government Solutions segment serves large government end-users that require mission-critical technologies and systems.
Comtech has created a niche market for secure wireless solutions to defend global security and improve public safety. The company continues to provide market-leading products for messaging, location and deployable wireless communications. It offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to users.
Comtech expects fiscal fourth-quarter GAAP earnings to be impacted by a charge of nearly $2.2 million or 7 cents per share, primarily related to a targeted acquisition and its enterprise technology product solutions repositioning. For the to-be-reported quarter, the Zacks Consensus Estimate for total revenues stands at $165 million. It posted revenues of $167 million in the prior-year quarter. Adjusted earnings per share are pegged at 10 cents. The company reported earnings of 40 cents a year ago.
What Our Model Says
Our proven model does not conclusively show that Comtech is likely to beat earnings this quarter as it does not possess one of the two key components. A stock needs to have both a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.