NASDAQ$CMTL

Comtech Telecommunications Corp · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Comtech's Q4 2024 performance was impacted by factors affecting bottom line, despite strong net bookings and stable net sales.

Comtech's Q4 fiscal 2024 saw net sales of $126.2 million and a significant operating loss of $81.5 million, which included a $64.5 million non-cash impairment charge. Despite these challenges, the company achieved record funded backlog of approximately $800 million and net bookings of $271.5 million.

  • Comtech is executing a transformative strategy to become a pure-play satellite and space communications company.
  • Consolidated net bookings rose 167% sequentially to $271.5 million, with a book-to-bill ratio of 2.15x.
  • Consolidated net sales saw a modest sequential decline to $126.2 million.
  • Operating loss was $81.5 million, including a $64.5 million non-cash impairment charge.

Headline financials

Total Revenue

$126M

Previous: $149M-15.2%
EPS (adj)

-$0.35

Previous: $0.29-220.7%
Capital Expenditures

-$4.18M

Previous: $3.44M-221.6%
Net Income

-$77.1M

Previous: -$3.54M-2079.2%
Operating Income

-$81.5M

Previous: $1.12M-7370.3%
Gross Profit

$27.1M

Previous: $48.6M-44.2%
R&D Expense

$3.68M

No prior period

Revenue & EPS history

Comtech · Revenue · Quarterly

$126M

Q4 2024-15.2%vs Q4 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 is focused on evaluating investments in long-term customer programs, accelerating the cash conversion cycle, and winning business by solving customer challenges.

Tailwinds

  • Evaluating investments in long-term customer programs.
  • Continuing to accelerate our cash conversion cycle, and in particular, monetizing our unbilled receivables.
  • Continue to win business by doing what we have always done best: solving our customers’ challenging problems.
  • Demand for our technologies and solutions remains strong.
  • Comtech comprises two very good businesses, with market-leading people and products, operating in growing markets and serving customers who clearly value our solutions.

Headwinds

  • Financial performance was below our expectations.
  • Margins, and thus profitability, came under significant pressure.
  • Consolidated gross margins were sequentially down 890 basis points to 21.5%.
  • Experienced a delay in the timing of our receipt of a large troposcatter related foreign military sales order.
  • The timing and amount of such orders are often difficult to predict, due to various factors, including political influences and defense spending budgets.

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 Q4 2024

Historical avgQ4 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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