Comtech Profit Rises, Lifts FY14 Outlook - Update

(RTTNews) - Comtech Telecommunications Corp. (CMTL) Thursday said its profit for the third quarter rose, as sales increased reflecting strong growth at telecommunications transmission and RF microwave amplifiers business. Both earnings and revenue for the quarter topped Wall Street estimates.

Moving ahead, the company lifted its financial outlook for full year 2014, based on the third quarter results.

Melville, New York-based Comtech's third-quarter profit rose to $5.9 million or $0.32 per share from $2.8 million or $0.17 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the third quarter grew to $88.9 million from $69.9 million last year. Analysts had expected sales of $77.50 million for the quarter.

The company said sales growth was driven by telecommunications transmission and RF microwave amplifiers segments, but partially offset by lower sales in its mobile data communications segment.

Looking forward to the fiscal year 2014, the company now expect earnings of $1.25 to $1.30 per share and revenues of $342.0 million and $346.0 million. Analysts currently expect full-year earnings of $1.19 per share on revenues of $334.97 million.

Earlier, Comtech expected earnings of $1.14 to $1.26 per share and revenues of $325 million and $345 million.

Chief Executive Fred Kornberg said, "We are excited about the many large growth opportunities we see and are increasingly optimistic that, as we look to next year, fiscal 2015 will be another year of growth on both the top and bottom lines."

CMTL closed Thursday's trading at $32.99, up $1.55 or 4.93%, on the Nasdaq. The stock further gained $1.37 or 4.15%, in after-hours trade.