NASDAQ$CMTL

Comtech Telecommunications Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Comtech's business transformation efforts began to deliver results, with financial KPIs exceeding expectations and bookings highlighting increasing customer value.

Comtech reported a sequential increase in consolidated net sales for the fourth consecutive quarter, driven by higher revenue in the Satellite and Space Communications segment. Bookings increased, leading to growth in funded backlog. Adjusted EBITDA also increased, reflecting the rise in net sales.

  • Consolidated net sales increased 12.2% year-over-year to $131.1 million, marking the fourth consecutive quarter of growth.
  • Consolidated bookings reached $181.2 million, contributing to a funded backlog of $668.2 million, up 8.1% from the previous quarter.
  • Adjusted EBITDA was $10.7 million, or 8.2% of consolidated net sales, compared to $5.5 million in the same quarter last year.
  • Satellite and Space Communications segment revenues increased 25.2% year-over-year, driven by foreign military sales and upgrades to Ukrainian systems.

Headline financials

Total Revenue

$131M

Previous: $117M+12.3%
EPS (adj)

$0.16

Previous: -$0.15+206.7%
Gross Margin

35.7%

No prior period
Funded Backlog

$668M

No prior period
Capital Expenditures

-$7.22M

Previous: -$3.64M-98.5%
Free Cash Flow

-$18.3M

Previous: -$9.62M-90.4%
Net Income

-$11.1M

Previous: -$5.98M-85.4%
Operating Income

-$9.72M

Previous: -$6.52M-49.3%
Gross Profit

$46.8M

Previous: $41.7M+12.1%
Cash & Equivalents

$21.5M

Previous: $30.9M-30.4%
Total Assets

$978M

Previous: $983M-0.5%

Revenue & EPS history

Comtech · Revenue · Quarterly

$131M

Q1 2023+12.3%vs Q1 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Comtech · $80.9M total across 1 segment · Q1 2023

  • Satellite and Space Communications
    $80.9M

Forward guidance

Comtech expects net sales to grow between 1% and 3% sequentially for Q2 fiscal 2023, and Adjusted EBITDA margin to be approximately 8.0%.

Tailwinds

  • Net sales are expected to grow between 1% and 3% sequentially.
  • Adjusted EBITDA margin is expected to be approximately 8.0%.

Headwinds

  • Uncertainties continue to pervade the macro operating environment.
  • Guidance excludes stock-based compensation.
  • Guidance excludes adjustments to the provision for income taxes.
  • Guidance excludes amortization of intangibles.
  • Guidance excludes interest expense.

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 2023

Historical avgQ1 2023

-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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