NASDAQ$CMTL

Comtech Telecommunications Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Comtech's financial performance exceeded expectations, showing sequential quarterly revenue and Adjusted EBITDA growth, while facing a challenging and unpredictable operating environment.

Comtech reported Q3 fiscal year 2022 results with consolidated net sales of $122.1 million, a sequential increase of 1.4% from Q2 2022. The company's Adjusted EBITDA was $11.2 million, up 14.3% sequentially. However, GAAP net loss attributable to common stockholders was $1.7 million, with a GAAP EPS loss of $0.06, although Non-GAAP EPS was an income of $0.06.

  • Consolidated net sales were $122.1 million, up 1.4% sequentially from Q2 2022.
  • Adjusted EBITDA of $11.2 million, a 14.3% sequential increase.
  • New bookings were $113.4 million, resulting in a quarterly book-to-bill ratio of 0.93x.
  • Backlog of $602.3 million as of April 30, 2022.

Headline financials

Total Revenue

$122M

Previous: $139M-12.4%
EPS (adj)

$0.06

Previous: $0.26-76.9%
Gross Margin

38.2%

No prior period
Book-to-Bill Ratio

0.93

Previous: 0.83+12.0%
Capital Expenditures

-$5.61M

Previous: -$4.55M-23.2%
Free Cash Flow

-$5.63M

Previous: -$3.76M-49.9%
Net Income

-$25K

Previous: $792K-103.2%
Operating Income

-$566K

Previous: $2.35M-124.1%
Gross Profit

$46.7M

Previous: $53M-12.0%
Cash & Equivalents

$32.8M

Previous: $39.2M-16.2%
Total Assets

$984M

Previous: $999M-1.5%

Revenue & EPS history

Comtech · Revenue · Quarterly

$122M

Q3 2022-12.4%vs Q3 2021
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 adjusted its financial targets for fiscal year 2022 due to market conditions and near-term uncertainties.

Tailwinds

  • Q4 fiscal 2022 net sales are expected to approximate $123.0 million resulting in expected fiscal 2022 consolidated net sales of approximately $482.0 million.
  • Q4 fiscal 2022 Adjusted EBITDA is expected to approximate $11.5 million resulting in expected fiscal 2022 Adjusted EBITDA of approximately $38.0 million.
  • The underlying demand environment remains intact, and Comtech believes it is growing stronger.
  • Government Solutions segment backlog is up from last quarter.
  • Overall demand for satellite earth station products is solid, and the pipeline for those products is growing.

Headwinds

  • Incremental research and development expenses.
  • Removal of several identified and viable opportunities in both Commercial Solutions and Government Solutions segments that are no longer expected to occur in Q4.
  • Two NG-911 opportunities in the Commercial Solutions segment are now in holding patterns.
  • Supply chain constraints remain a challenge.
  • Inflation is now a significant issue on several fronts.

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 2022

Historical avgQ3 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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