Comtech Profit Tops Estimate, Lifts Outlook; Stock Up - Update

(RTTNews) - Comtech Telecommunications Corp. (CMTL) Monday reported a lower first-quarter profit, hurt mainly by a decline in sales in the RF microwave amplifiers and mobile data communications segments, partly offset by growth in the telecommunications transmission business. Still, the quarterly results came in above Wall Street estimates.

The communications solutions provided also raised its outlook for 2014, sending its shares up 6.5 percent in after-hours trade on the Nasdaq.

Comtech saw some stability in certain end-markets during the quarter, said CEO Fred Kornberg.

The Melville, New York-based company posted quarterly net income of $5.3 million or $0.28 per share, compared with $7.4 million or $0.36 per share last year.

On average, four analysts polled by Thomson Reuters expected earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter were lower at $83 million, compared with $91 million in the prior year. Analysts estimated sales of $78.20 million.

For fiscal 2014, Comtech now expects net earnings of $1.12 per share to $1.25 per share and sales of $325 million to $345 million. It earlier estimated earnings of $1.07 to $1.19 per share and sales of $320 million to $340 million.

Analysts estimate earnings of $1.14 per share on revenues of $327.96 million for the year.

Backlog as of October 2013 was $182.8 million, compared with $189.7 million as of July 2013, the company said.

Also, Comtech said its board raised its annual target dividend by ten cents to $1.20 per share and declared a quarterly cash dividend of $0.30 per share.

The board has doubled its existing stock buyback program to $100 million. During the third quarter, the company repurchased 124,753 of its common shares for about $3.6 million.

Comtech stock closed Monday at $31.29, down $0.04 or 0.13%, on a volume of 179 thousand shares. In after hours, the stock gained $2.05 or 6.55% at $33.34.