Comtech Telecomm. Corp. First Quarter Earnings Sneak Peek

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Comtech Telecomm. Corp. (NASDAQ:CMTL) will unveil its latest earnings on Thursday, December 6, 2012. Comtech Telecommunications designs, develops, produces, and markets innovative products, systems, and services for advanced communications solutions.

Comtech Telecomm. Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 30 cents per share, a decline of 26.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 32 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 30 cents during the last month. Analysts are projecting profit to rise by 7.7% compared to last year’s $1.43.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 45 cents per share against a mean estimate of net income of 38 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 33.3% to $7.9 million (38 cents a share) from $11.9 million (43 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 19.6% to $112.8 million from $140.3 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 18.3% in revenue from the year-earlier quarter to $92.6 million.

Stock Price Performance: Between September 6, 2012 and November 30, 2012, the stock price fell $2.80 (-9.9%), from $28.36 to $25.56. The stock price saw one of its best stretches over the last year between November 20, 2012 and November 30, 2012, when shares rose for eight straight days, increasing 5.8% (+$1.39) over that span. It saw one of its worst periods between October 16, 2012 and October 26, 2012 when shares fell for nine straight days, dropping 5.4% (-$1.45) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 36.4% in the first quarter of the last fiscal year, 39.1% in second quarter of the last fiscal year and 23.9% in the third quarter of the last fiscal year and then fell again in the fourth quarter of the last fiscal year of the last fiscal year.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 51.4% over the past four quarters.

Analyst Ratings: There are mostly holds on the stock with five of six analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.25 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 6.58 in the third quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 4.4% to $516.9 million while liabilities rose by 0.6% to $82.7 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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