NASDAQ$CMTL

Comtech Telecommunications Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Comtech's Q2 2024 performance reflected a slight year-over-year increase in net sales and significant growth in Adjusted EBITDA, driven by operational improvements, despite facing order delays and supply chain constraints.

Comtech reported a slight increase in consolidated net sales to $134.2 million compared to $133.7 million in the second quarter of fiscal 2023. Adjusted EBITDA grew by 33% year-over-year, achieving an 11.3% margin. The company also reported GAAP operating income of $3.0 million, marking the third consecutive quarter of positive operating income since fiscal 2021.

  • Consolidated net sales increased slightly year-over-year to $134.2 million.
  • Adjusted EBITDA increased by 33% year-over-year to $15.1 million, with an 11.3% margin.
  • GAAP operating income was $3.0 million, showing sequential improvement.
  • Backlog approximated $680 million, indicating healthy demand for Comtech's solutions.

Headline financials

Total Revenue

$134M

Previous: $134M+0.4%
EPS (adj)

-$0.15

Previous: $0.09-266.7%
Book-to-Bill Ratio

1.12

No prior period
Adj. EBITDA Margin

11.3%

No prior period
Capital Expenditures

-$4.27M

Previous: -$2.7M-58.4%
Net Income

-$10.6M

Previous: -$4.81M-119.7%
Operating Income

$2.97M

Previous: -$781K+480.7%
Gross Profit

$43.2M

Previous: $45.9M-5.9%
R&D Expense

$6.84M

No prior period

Revenue & EPS history

Comtech · Revenue · Quarterly

$134M

Q2 2024+0.4%vs Q2 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Comtech anticipates that several lean initiatives and process improvement activities will contribute to improved financial performance. They are targeting net sales and Adjusted EBITDA for fiscal year 2024 to be better than fiscal 2023.

Tailwinds

  • Progress through One Comtech transformation.
  • Implementation of lean initiatives and process improvement activities.
  • Actions have already contributed to improved financial performance.
  • Targeting net sales for fiscal year 2024 to be better than fiscal 2023.
  • Targeting Adjusted EBITDA for fiscal year 2024 to be better than fiscal 2023.

Headwinds

  • Business conditions continue to be challenging.
  • Operating environment is largely unpredictable.
  • Anticipate some variability from time to time.
  • Order delays and supply chain constraints largely stemming from the refinancing overhang.
  • Incumbent protested the award, which resulted in a stop work order.

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 2024

Historical avgQ2 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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