Comtech Telecomm Third Quarter Earnings Sneak Peek

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Comtech Telecomm. Corp. (NASDAQ:CMTL) will unveil its latest earnings on Thursday, June 7, 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 profit of 24 cents per share, a decline of 48.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 28 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 24 cents during the last month. Analysts are projecting profit to rise by 30.1% versus last year to $1.37.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 27 cents per share against a mean estimate of profit of 22 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $97.8 million in revenue this quarter, a decline of 25.4% from the year-ago quarter. Analysts are forecasting total revenue of $421.3 million for the year, a decline of 31.2% from last year’s revenue of $612.4 million.

Analyst Ratings: Analysts seem relatively indifferent about Comtech Telecomm with six of seven analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit fell 63.8% to $5.8 million (27 cents a share) from $16.1 million (52 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 39.1% to $99.1 million from $162.8 million.

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 39.4% in the third quarter of the last fiscal year, 45.4% in fourth quarter of the last fiscal year and 36.4% in the first quarter and then fell again in the second quarter.

Stock Price Performance: Between April 4, 2012 and June 1, 2012, the stock price had fallen $4.38 (-13.1%), from $33.33 to $28.95. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011, when shares rose for eight straight days, increasing 19.1% (+$5.06) over that span. It saw one of its worst periods between February 24, 2012 and March 6, 2012 when shares fell for eight straight days, dropping 4.6% (-$1.51) over that span.

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

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