NASDAQ$CMTL

Comtech Telecommunications Corp · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Comtech's Q1 2024 results were driven by revenue growth and the 'One Comtech' transformation.

Comtech reported a strong start to fiscal year 2024, with net sales increasing by 15.9% year-over-year to $151.9 million and bookings reaching $185.6 million, resulting in a book-to-bill ratio of 1.22x. The company's 'One Comtech' transformation is taking root, leading to sequential revenue growth and improved operating income.

  • Net sales for Q1 2024 increased by 15.9% year-over-year to $151.9 million.
  • Bookings for Q1 2024 reached $185.6 million, with a book-to-bill ratio of 1.22x.
  • The 'One Comtech' transformation is driving sequential revenue growth and improved operating income.
  • The company's revenue visibility as of October 31, 2023, approximates $1.7 billion.

Headline financials

Total Revenue

$152M

Previous: $131M+15.8%
EPS (adj)

$0.24

Previous: $0.16+50.0%
Book-to-Bill Ratio

1.22

No prior period
Capital Expenditures

-$3.22M

Previous: -$7.22M+55.5%
Free Cash Flow

-$4.65M

Previous: -$18.3M+74.6%
Net Income

-$1.44M

Previous: -$11.1M+87.0%
Operating Income

$2.09M

Previous: -$9.72M+121.5%
Gross Profit

$47.9M

Previous: $46.8M+2.3%
Cash & Equivalents

$18.1M

Previous: $21.5M-15.8%
Total Assets

$1.01B

Previous: $978M+3.6%
R&D Expense

$7.81M

No prior period

Revenue & EPS history

Comtech · Revenue · Quarterly

$152M

Q1 2024+15.8%vs Q1 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Comtech · $102M total across 1 segment · Q1 2024

  • Satellite and Space Communications
    $102M+26.6%

Forward guidance

For the second quarter of fiscal 2024, Comtech anticipates sequential net sales growth of 1% to 3% and an Adjusted EBITDA margin in the low double-digit percentage range (11% – 13%). Continued improvement in operating income on a sequential basis is also expected.

Tailwinds

  • Sequential net sales growth of 1% to 3% is expected.
  • Adjusted EBITDA margin is projected to remain in the 11% - 13% range.
  • Continued improvement in operating income on a sequential basis is anticipated.
  • One Comtech operating model will drive long-term growth and profitability.
  • Lean initiatives are expected to contribute to margin improvement.

Headwinds

  • Ongoing uncertainties in the economic and geopolitical environment pose challenges.
  • The timing and execution of the credit facility refinancing introduce complexity.
  • Near-term visibility into sales remains a challenge due to the volatile business environment.
  • The product and service mix may vary from quarter to quarter.
  • Targets are subject to the timing and outcome of efforts to refinance the existing Credit Facility.

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 2024

Historical avgQ1 2024

-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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