Movers and SHAKERS
Positives Outweigh the Negatives
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, develops, 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.
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3Q21 Results. Comtech reported revenue of $139.4 million, up 3.2% from the $135.1 million reported last year. Adjusted EBITDA came in at $17.7 million compared to $12.5 million last year. EPS was $0.03 and adjusted EPS was $0.26 compared to a loss of $0.16 and EPS of $0.05, respectively, last year. We had forecast revenue of $141 million, adjusted EBITDA of $10.6 million, EPS of $0.03, and adjusted EPS of $0.14.
Multiple Potential Business Drivers. Comtech has a number of large opportunities ahead, including a multi-year agreement for next gen satellite earth station equipment that could be worth hundreds of millions, an updated version of BFT, also potentially worth in the hundreds of millions, multiple NG911 statewide contracts, and additional troposcatter opportunities. And, at the most basic, just a ...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the 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.