NASDAQ$CMTL

Comtech Telecommunications Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Comtech reported solid operating performance and secured important contract awards.

Comtech announced its Q3 2021 results with consolidated net sales of $139.4 million. The company achieved a book-to-bill ratio of 0.83 with bookings of $115.9 million. GAAP operating income was $2.4 million, GAAP net income was $0.8 million, and GAAP EPS was $0.03.

  • Consolidated net sales of $139.4 million and Adjusted EBITDA of $17.7 million (or 12.7% of consolidated net sales).
  • Bookings of $115.9 million, with a book-to-bill ratio of 0.83.
  • GAAP operating income of $2.4 million, GAAP net income of $0.8 million and GAAP net income per diluted share of $0.03.
  • Generated GAAP operating cash flows of $6.8 million and had $39.2 million of cash and cash equivalents.

Headline financials

Total Revenue

$139M

Previous: $135M+3.1%
EPS (adj)

$0.26

Previous: $0.05+420.0%
Book-to-Bill Ratio

0.83

Previous: 1.02-18.6%
Capital Expenditures

-$4.55M

Previous: -$1.91M-138.0%
Free Cash Flow

-$3.76M

Previous: -$5.9M+36.3%
Net Income

$792K

Previous: -$3.99M+119.9%
Operating Income

$2.35M

Previous: -$3.14M+174.9%
Gross Profit

$53M

Previous: $53M+0.0%
Cash & Equivalents

$39.2M

Previous: $50.6M-22.6%
Total Assets

$999M

Previous: $952M+4.9%

Revenue & EPS history

Comtech · Revenue · Quarterly

$139M

Q3 2021+3.1%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
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 $580.0 million to $590.0 million and continues to target Adjusted EBITDA in a range of $74.0 million to $76.0 million for fiscal 2021.

Tailwinds

  • Strong demand for Comtech's public safety technology solutions.
  • Delivering 5G virtual mobile location-based technology solutions for two U.S. tier-one mobile network operators.
  • Contract performance in support of 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.
  • Deliveries of SLM-5650B satellite modems and firmware related to a previously awarded contract from the U.S. Naval Information Warfare Systems Command.
  • Multi-year agreement enabling a customer to potentially order hundreds of millions of dollars of its next-generation satellite earth station technology.

Headwinds

  • Change in anticipated revenues in its Government Solutions segment due to the U.S. government's April 2021 announcement to fully withdraw troops from Afghanistan.
  • Fiscal 2021 is anticipated to reflect significantly lower sales of field support services.
  • Evaluating the new market of next-generation satellite technology in relation to its long-term business strategies, and it may incur additional costs over the next twelve months.
  • Ongoing effort to improve efficiencies and streamline operations in its Government Solutions segment.
  • The pandemic's continuing impact on global business conditions.

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 2021

Historical avgQ3 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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