NASDAQ$CMTL

Comtech Telecommunications Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Comtech reported results for the second quarter of fiscal year 2021 and updated its financial targets for fiscal year 2021.

Comtech Telecommunications Corp. reported consolidated net sales of $161.3 million and Adjusted EBITDA of $18.1 million for the second quarter of fiscal year 2021. The company achieved a book-to-bill ratio of 1.34 with bookings of $215.8 million. GAAP operating income was $5.4 million, GAAP net income was $4.2 million, and GAAP net income per diluted share was $0.17.

  • Consolidated net sales of $161.3 million and Adjusted EBITDA of $18.1 million significantly exceeded expectations.
  • Bookings of $215.8 million resulted in a book-to-bill ratio of 1.34.
  • Backlog as of January 31, 2021 was $660.0 million, with revenue visibility approximating $1.1 billion when including unfunded multi-year contracts.
  • GAAP operating income was $5.4 million, GAAP net income was $4.2 million and GAAP net income per diluted share was $0.17.

Headline financials

Total Revenue

$161M

Previous: $162M-0.2%
EPS (adj)

$0.27

Previous: $0.32-15.6%
Book-to-Bill Ratio

1.34

Previous: 0.94+42.6%
Capital Expenditures

-$2.8M

Previous: -$1.26M-122.3%
Free Cash Flow

$1.41M

Previous: $2.24M-37.0%
Net Income

$4.21M

Previous: $3.5M+20.3%
Operating Income

$5.4M

Previous: $6.23M-13.3%
Gross Profit

$55.7M

Previous: $60.6M-8.1%
Cash & Equivalents

$30.9M

Previous: $46.5M-33.4%
Total Assets

$947M

Previous: $950M-0.4%

Revenue & EPS history

Comtech · Revenue · Quarterly

$161M

Q2 2021-0.2%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Comtech expects fiscal 2021 consolidated net sales to be in a range of $610.0 million to $620.0 million and continues to target Adjusted EBITDA in a range of $74.0 million to $76.0 million.

Tailwinds

  • Strong demand for Comtech's public safety technology solutions.
  • Providing 5G virtual mobile location-based technology solutions for two U.S. tier-one mobile network operators.
  • Deliveries to support a critical U.S. Air Force and U.S. Army Anti-jam Modem (“A3M”) program under the U.S. Space Force’s Space and Missile Systems Center (“SMC”) agency.
  • Ongoing demand for Manpack Satellite Terminals, networking equipment and other advanced VSAT products by the U.S. Army.
  • Ongoing sustainment services for the U.S. Army for the AN/TSC-198A SNAP terminal.

Headwinds

  • The Company is not providing any GAAP operating income guidance.
  • The Company is not providing any GAAP net income guidance.
  • The Company is not providing any GAAP EPS guidance.
  • The Company is not providing a reconciliation of the Company’s projected Adjusted EBITDA results to the most comparable GAAP measure.
  • The company is not able to address the probable significance of the unavailable information, which could be material to future results.

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 Q2 2021

Historical avgQ2 2021

-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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