Comtech Sinks 15% on Weak Outlook, CEO Says Worried About Economy Like Elon and Jamie

Comtech Telecom (NASDAQ: CMTL) shares plunged around 15% after-hours following the company’s reported Q3 results. While EPS of $0.06 came in line with the consensus estimate, and revenue of $122.1 million was just slightly below the consensus estimate of $122.44 million, the company’s Q4 guidance missed the expectations.

Given market conditions and near-term uncertainties, the company adjusted its Q4 guidance, expecting revenue of $123 million, below the consensus estimate of $157.06 million.

"While the long-term prospects for our business are strong, the near-term economic environment promises to be challenging. Elon Musk isn’t the only person with a “super bad feeling” about the economy," Mike Porcelain commented. "Additionally, Jamie Dimon’s warning that a “hurricane is right out there down the road coming our way” may prove to be true. I too, feel that the economic backdrop is more uncertain than it was earlier in our fiscal year ---- as a result ---- I am adjusting our Q4 and fiscal 2022 targets."

Shares of CMTL were down 48% year-to-date into the results.

By Davit Kirakosyan

You May Also Be Interested In

• Texas AG Paxton announces ongoing investigation into Carnival over data breach
• This is the best toy stock to own in 2026 – Jefferies
• This digital health stock is ready to re-rate higher: Goldman