Comtech Telecom (CMTL) Tops Q2 EPS by 10c, Offers Guidance

Comtech Telecom (NASDAQ: CMTL) reported Q2 EPS of $0.32, $0.10 better than the analyst estimate of $0.22. Revenue for the quarter came in at $161.7 million versus the consensus estimate of $170.25 million.

GUIDANCE:

Comtech Telecom sees FY2020 EPS of $1.42 vs $1.33 expected.

Comtech’s updated GAAP EPS target for fiscal 2020 is $1.08. This GAAP EPS metric reflects all actual and expected third quarter fiscal 2020 acquisition plan expenses, the benefit from the reversal of certain estimated contract settlement costs and net discrete tax items. Excluding actual and expected third quarter fiscal 2020 acquisition plan expenses, the benefit from the reversal of certain estimated contract settlement costs and net discrete tax items, Non-GAAP EPS is now expected to approximate $1.42, as compared to Comtech's previous targeted range of $1.42 to $1.56.

Comtech Telecom sees Q3 2020 revenue of $150-155 million vs $182.66 expected.

Given Comtech’s current expectations of the economic fallout resulting from the coronavirus, Comtech expects its third quarter consolidated net sales to range from $150.0 million to $155.0 million, with Adjusted EBITDA ranging from $16.0 million to $18.0 million, before significantly rebounding in the fourth quarter of fiscal 2020. As such, Comtech’s fourth quarter of fiscal 2020 is still expected to be the peak quarter - by far - for its consolidated net sales, GAAP operating income, GAAP net income and Adjusted EBITDA. Comtech’s updated fiscal 2020 financial targets reflect several large items expected to be shipped during the second half of fiscal 2020, the timing of which could shift into fiscal 2021.

For earnings history and earnings-related data on Comtech Telecom (CMTL) click here.

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