Research Desk Line-up: Optical Cable Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Comtech Telecommunications Corp. (NASDAQ: CMTL), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=CMTL, following the Company's release of its financial results on September 27, 2017, for the fourth quarter fiscal 2017. The Company's adjusted EBITDA increased 54.4% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Communication Equipment industry. Pro-TD has currently selected Optical Cable Corporation (NASDAQ: OCC) for due-diligence and potential coverage as the Company announced on September 12, 2017, its financial results for Q3 2017 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Optical Cable when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CMTL; also brushing on OCC. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=CMTL
http://protraderdaily.com/optin/'symbol=OCC
Earnings Reviewed
For three months ended July 31, 2017, Comtech's net revenue decreased 3% to $147.76 million from $152.38 million in Q4 FY16. During Q4 FY17, Comtech's Commercial Solutions segment's net revenue increased 11.9% to $93.2 million from $83.3 million in Q4 FY16. During Q4 FY17, Comtech's Government Solutions segment's net revenue decreased 21% to $54.6 million from $69.1 million in Q4 FY16. The Company's net revenue was below analysts' expectations of $150.7 million.
During FY17, Comtech's net revenue increased 33.9% to $550.37 million from $411.00 million in FY16.
During Q4 FY17, the Company's gross profit decreased 2.8% to $60.41 million from $62.21 million in Q4 FY16. For the reported quarter, the Company's gross margin was 40.8% of revenue, at par with 40.8% of revenue in the same period last year.
For the reported quarter, Comtech's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 54.4% to $29.07 million from $18.82 million in Q4 FY16. During Q4 FY17, the Company's adjusted EBITDA margin increased 730 basis points to 19.6% of revenue from 12.3% of revenue in Q4 FY16.
For the reported quarter, Comtech's selling, general, and administrative (SG&A) expenses decreased 22.3% to $26.48 million from $34.11 million in Q4 FY16. During Q4 FY17, the Company's research and development (R&D) expenses decreased 0.5% to $13.89 million from $13.97 million in the same period last year. For the reported quarter, Comtech's amortization expenses decreased 13.1% to $5.27 million from $6.07 million in Q4 FY16.
During Q4 FY17, Comtech's operating income increased 97.9% to $14.77 million from $7.46 million in Q4 FY16. For the reported quarter, the Company's operating margin increased 510 basis points to 9.9% of revenue from 4.8% of revenue in Q4 FY16.
During Q4 FY17, Comtech's net income increased 170.7% to $7.31 million on a y-o-y basis from $2.70 million in Q4 FY16. For the reported quarter, the Company's diluted EPS increased 121.4% to $0.31, on a y-o-y basis from $0.14 in Q4 FY16. The diluted EPS surpassed analysts' expectations of $0.28.
During FY17, the Company's net income was $15.83 million compared to net loss of $7.74 million in FY16. During FY17, the Company's diluted EPS was positive $0.67 compared to negative diluted EPS of $0.46 in FY16.
On September 27, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on November 17, 2017, to stockholders of record at the close of business on October 18, 2017.
Balance Sheet
As on July 31, 2017, Comtech's cash and cash equivalents decreased 37.3% to $41.84 million from $66.81 million in Q4 FY16.
During Q4 FY17, the Company's net accounts receivable decreased 17.2% to $124.96 million from $150.97 million in Q4 FY16.
For the reported quarter, Comtech's net inventories decreased 15% to $60.60 million from $71.35 million in Q4 FY16.
During Q4 FY17, the Company's accounts payable decreased 12.1% to $29.40 million from $33.46 million in Q4 FY16.
For the reported quarter, Comtech's net long-term debt decreased 26.5% to $176.23 million from $239.97 million in Q4 FY16.
During Q4 FY17, the Company's book to bill ratio was 0.90 and backlog was $446.2 million.
Outlook
For FY18, Comtech expects revenue to be in the range of $550.0 million to $575.0 million and diluted EPS to be in the range of $0.41 to $0.44. The Company estimates effective tax rate to be 34.75% for fiscal 2018.
Stock Performance
On Friday, October 06, 2017, the stock closed the trading session at $20.62, slightly down 0.43% from its previous closing price of $20.71. A total volume of 139.34 thousand shares have exchanged hands. Comtech Telecommunications' stock price soared 10.98% in the last three months, 54.92% in the past six months, and 62.88% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 74.01%. The stock is trading at a PE ratio of 30.68 and has a dividend yield of 1.94%. At Friday's closing price, the stock's net capitalization stands at $480.45 million.
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