NASDAQ$CMTL

Comtech Telecommunications Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported financial results for the first fiscal quarter and reconfirmed financial targets for fiscal 2022.

Comtech Telecommunications Corp. reported consolidated net sales of $116.8 million and a GAAP net loss of $6.0 million for the first quarter of fiscal 2022. The company reconfirmed its financial targets for fiscal 2022, expecting consolidated net sales to be in the range of $580.0 million to $600.0 million and Adjusted EBITDA between $70.0 million and $76.0 million.

  • Consolidated net sales for the first quarter of fiscal 2022 were $116.8 million, GAAP net loss was $6.0 million and Adjusted EBITDA was $5.5 million.
  • New bookings for the first quarter of fiscal 2022 were $86.4 million, resulting in a quarterly book-to-bill ratio of 0.74x.
  • Backlog as of October 31, 2021, was $628.5 million, $23.0 million higher than the backlog that existed as of October 31, 2020.
  • Comtech secured a $100.0 million strategic growth investment from White Hat Capital Partners, LP and Magnetar Capital LLC.

Headline financials

Total Revenue

$117M

Previous: $135M-13.7%
EPS (adj)

-$0.15

Previous: $0.15-200.0%
Book-to-Bill Ratio

0.74

Previous: 0.91-18.7%
Capital Expenditures

-$3.64M

Previous: -$890K-308.8%
Free Cash Flow

-$9.62M

Previous: -$86.7M+88.9%
Net Income

-$5.98M

Previous: -$85.8M+93.0%
Operating Income

-$6.52M

Previous: -$85.7M+92.4%
Gross Profit

$41.7M

Previous: $50.2M-16.9%
Cash & Equivalents

$30.9M

Previous: $32.5M-4.8%
Total Assets

$983M

Previous: $919M+7.0%

Revenue & EPS history

Comtech · Revenue · Quarterly

$117M

Q1 2022-13.7%vs Q1 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Comtech · $106M total across 2 segments · Q3 2026

  • Allerium
    $55.7M
  • Satellite and Space Communications
    $50.3M

Forward guidance

Comtech reconfirms it is targeting to achieve fiscal 2022 consolidated net sales to be in a range of $580.0 million to $600.0 million and Adjusted EBITDA between $70.0 million and $76.0 million.

Tailwinds

  • Comtech expects sequential performance improvements through the year.
  • Supply chain constraints will ease during the second half of its fiscal 2022.
  • Increase company-wide collaboration to exploit emerging opportunities
  • Creation of a focused commercial satellite networking group based in the United States that will cater to the needs of certain U.S. government customers
  • Expanding the employee talent pool including adding a new COO and dedicated investor relations professional

Headwinds

  • COVID-19 continuing to impact global markets and supply chains
  • Reliable forecasting remains challenging.
  • Financial performance in the first half of fiscal 2022 to be significantly lower than the comparative period of fiscal 2021.
  • Global supply chain issues make the amount and timing of start-up manufacturing expenses and restructuring costs difficult to predict.
  • GAAP operating income in fiscal 2022 will be impacted by greater than normal proxy solicitation costs, as well as leadership transition costs associated with the appointment of a new CEO.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-3.1%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-3.9%

Avg return

30 days after

32%

21 / 66 earnings

Positive

+75.6%

Q3 2024

Best reaction

-26.9%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-24.5%-25.4%-17.5%
Q1 2026-15.5%-21.3%+51.1%
Q4 2025+7.0%+6.7%+20.7%
Q3 2025+0.0%+14.4%+26.2%
Q2 2025-11.3%-9.4%-36.6%
Q4 2024-24.8%+1.7%-26.6%
Q3 2024+75.6%+67.7%+40.1%
Q2 2024-25.3%-30.1%-56.2%
Q1 2024-26.9%-36.4%-31.8%
Q4 2023+17.8%+17.3%+37.0%
Q3 2023-19.1%-20.6%-23.8%
Q2 2023-15.8%-22.6%-24.8%
Q1 2023+5.4%+3.1%-1.6%
Q4 2022-2.4%+4.2%+5.9%
Q3 2022-24.0%-28.5%-25.9%
Q2 2022-19.3%-19.5%-25.2%
Q1 2022-2.9%-6.8%-6.7%
Q4 2021-13.5%-12.9%+1.1%
Q3 2021-10.4%-12.1%+1.8%
Q2 2021-3.5%-10.4%-13.8%
Q1 2021-14.4%-11.6%+10.5%
Q4 2020-0.2%-0.4%+6.8%
Q3 2020-7.2%+6.6%-13.3%
Q2 2020-15.2%-22.4%-56.8%
Q1 2020-0.5%-3.9%-1.5%
Q4 2019+17.6%+12.3%+6.6%
Q3 2019+17.5%+17.4%+24.0%
Q2 2019-10.0%-14.9%-12.2%
Q1 2019+13.7%+1.5%-2.7%
Q4 2018-5.9%+2.3%-19.0%
Q3 2018-2.0%-4.5%-1.2%
Q2 2018+25.3%+28.2%+23.9%
Q1 2018+6.3%-0.6%+5.3%
Q4 2017-13.5%-4.3%+5.6%
Q3 2017+17.4%+24.0%+23.6%
Q2 2017+24.8%+28.5%+20.6%
Q1 2017-11.9%-4.8%-0.3%
Q4 2016-7.2%-10.0%-24.6%
Q3 2016-10.8%-20.9%-42.3%
Q2 2016+0.0%
Q1 2016-5.7%
Q4 2015-19.4%
Q3 2015-0.4%
Q2 2015-13.1%
Q1 2015-16.0%
Q4 2014-5.7%
Q3 2014+23.3%
Q2 2014+1.4%
Q1 2014+1.9%
Q4 2013+5.8%
Q3 2013+3.5%
Q2 2013-4.9%
Q1 2013-5.8%
Q4 2012-2.7%
Q3 2012+4.5%
Q2 2012+4.2%
Q1 2012-4.4%
Q4 2011+2.0%
Q4 2009+2.0%
Q3 2010-10.8%
Q3 2011-10.8%
Q2 2010-3.5%
Q2 2011-3.5%
Q1 2011-12.1%
Q4 2010-12.1%
Q1 2010-12.1%

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