NASDAQ$CMTL

Comtech Telecommunications Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Comtech reported a challenging third quarter due to the COVID-19 pandemic, which caused order delays and lower net sales, but implemented cost-saving measures and remains optimistic about long-term growth.

Comtech Telecommunications Corp. reported net sales of $135.1 million for the third quarter of fiscal 2020. The company experienced an operating loss of $3.1 million and a net loss of $4.0 million, or $0.16 per diluted share. However, excluding certain expenses, non-GAAP net income was $1.2 million, or $0.05 per diluted share. Despite the challenges, Comtech believes the worst impact of the pandemic is behind it and remains well-positioned for growth.

  • Net sales for the third quarter of fiscal 2020 were $135.1 million.
  • Bookings during the third quarter of fiscal 2020 were $137.5 million, with a company-wide book-to-bill ratio of 1.02.
  • On a GAAP basis, the Company reported an operating loss of $3.1 million, a net loss of $4.0 million and a net loss per diluted share of $0.16.
  • Comtech generated GAAP operating cash flows of $7.7 million during the quarter and had $50.6 million of cash and cash equivalents at April 30, 2020.

Headline financials

Total Revenue

$135M

Previous: $170M-20.7%
EPS (adj)

$0.05

Previous: $0.42-88.1%
Book-to-Bill Ratio

1.02

No prior period
Capital Expenditures

-$1.91M

Previous: -$2.21M+13.4%
Free Cash Flow

-$5.9M

Previous: $5.41M-209.2%
Net Income

-$3.99M

Previous: $7.61M-152.4%
Operating Income

-$3.14M

Previous: $11.3M-127.8%
Gross Profit

$53M

Previous: $64.4M-17.7%
Cash & Equivalents

$50.6M

Previous: $45.2M+12.1%
Total Assets

$952M

Previous: $903M+5.3%

Revenue & EPS history

Comtech · Revenue · Quarterly

$135M

Q3 2020-20.7%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
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 2020 fourth quarter consolidated net sales, net income and Adjusted EBITDA to be somewhat better than the results it achieved during the third fiscal quarter. Comtech expects to incur acquisition plan expenses of approximately $3.5 million during the fourth quarter of fiscal 2020.

Headwinds

  • Fourth quarter results will be negatively impacted if orders and/or deliveries are delayed.
  • Fourth quarter results will be negatively impacted if business conditions further deteriorate.
  • Fourth quarter results will be negatively impacted if Comtech's current or prospective customers materially postpone purchases of its products and services.
  • Fourth quarter results will be negatively impacted if Comtech's current or prospective customers materially reduce purchases of its products and services.
  • Fourth quarter results will be negatively impacted if Comtech's current or prospective customers materially forgo purchases of its products and services.

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 Q3 2020

Historical avgQ3 2020

-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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