Comtech Profit Tops Street; Stock Up - Update

(RTTNews) - Comtech Telecommunications Corp. (CMTL) Thursday reported a higher second-quarter profit, helped by sales at telecommunications transmission and RF microwave amplifiers segments, partly offset by a slump at mobile data communications business. Both earnings and revenue for the quarter topped Wall Street estimates.

The company lifted its earnings outlook for 2014 but kept the revenue guidance unchanged.

Comtech shares were up 4.3 percent in after-hours trade on the Nasdaq.

"Although market conditions are difficult, we are pleased with our solid financial performance through the second quarter of fiscal 2014," said CEO Fred Kornberg.

Melville, New York-based Comtech posted second-quarter net earnings of $6 million or $0.32 per share, compared with $2.4 million or $0.14 per share last year. On average, four analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter increased to $85.5 million from $74.6 million last year, topping Street estimates of $80.3 million.

Results were also helped with expenses declining marginally to $26.2 million from a year ago.

For fiscal year 2014, Comtech now projects earnings of $1.14 to $1.26 per share, from prior guidance of $1.12 to $1.25 per share. Revenue is still expected between $325 million and $345 million. Analysts currently expect earnings of $1.19 per share on revenue of $336.6 million.

During the second quarter, the company repurchased about 811 thousand of its common shares for a total of $25.5 million. The company can make additional repurchases of up to $44 million pursuant to its existing $100 million buyback program.

Comtech said its backlog as of January 2014 was $168 million, compared with $182.8 million as of October 2013.

The company's stock closed Thursday at $32.59, up $%0.19 or 0.59%, on a volume of 93k shares. In after hours, the stock gained $1.41 or 4.33% at $34.00.