NASDAQ$CMTL

Comtech Telecommunications Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Comtech's financial performance exceeded bottom-line expectations despite facing cumulative challenges.

Comtech reported consolidated net sales of $120.4 million, a GAAP net loss attributable to common stockholders of $23.5 million, and an Adjusted EBITDA of $9.8 million.

  • Consolidated net sales were $120.4 million, up 3.1% sequentially from Q1 2022.
  • GAAP net loss attributable to common stockholders was $23.5 million, and included $13.6 million of CEO leadership transition charges and $9.1 million related to our settled proxy contest.
  • GAAP EPS loss of $0.89 and Non-GAAP EPS loss of $0.03.
  • Adjusted EBITDA was $9.8 million, a 76.7% sequential increase from Q1 2022.

Headline financials

Total Revenue

$120M

Previous: $161M-25.4%
EPS (adj)

-$0.03

Previous: $0.27-111.1%
Book-to-Bill Ratio

0.86

Previous: 1.34-35.8%
Revenue Visibility

$1.2B

No prior period
Capital Expenditures

-$5.17M

Previous: -$2.8M-85.0%
Free Cash Flow

-$27M

Previous: $1.41M-2019.6%
Net Income

-$21.9M

Previous: $4.21M-620.2%
Operating Income

-$24.6M

Previous: $5.4M-555.2%
Gross Profit

$45.9M

Previous: $55.7M-17.6%
Cash & Equivalents

$30.9M

Previous: $30.9M-0.1%
Total Assets

$995M

Previous: $947M+5.1%

Revenue & EPS history

Comtech · Revenue · Quarterly

$120M

Q2 2022-25.4%vs Q2 2021
Beat estimate in 7 of 16 quarters(44%)
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 2022 consolidated net sales to approximate $520.0 million and Adjusted EBITDA to approximate $50.0 million or 9.6% of targeted net sales.

Tailwinds

  • Combined sales pipeline and opportunities have never been stronger.
  • Financial performance during the second half of fiscal 2022 is still expected to improve versus the first half of fiscal 2022.
  • Q3’s consolidated net sales and Adjusted EBITDA are expected to approximate $122.0 million and $10.0 million, respectively.
  • Approximately 85% and 50%, respectively, of our Q3 and Q4 targeted revenues in our backlog.
  • The fundamental demand drivers for our business have not changed.

Headwinds

  • The Russia/Ukraine military conflict and geopolitical uncertainty in Europe have created a new set of pressures.
  • Anticipated funding for other expected orders, including for our satellite and space communications products, has been shifted to other programs and/or temporarily delayed as a result of a change in defense spending priorities.
  • The aggregate amount of the aforementioned items approximated $35.0 million and we are no longer including these opportunities in our updated fiscal 2022 consolidated net sales and Adjusted EBITDA targets.
  • Global supply chain disruptions on our customers and the possibility of extended purchase decision cycles or delays in execution.
  • Global supply chain constraints and COVID-19 pandemic aftershocks will continue to pressure our component availability and pricing, and impact logistics costs.

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 2022

Historical avgQ2 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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