Comtech Telecom Q3 Revenues Miss Street, Cuts FY Outlook; Shares Down 8%

(RTTNews) – Shares of Comtech Telecommunications Corp. (CMTL) slipped nearly 8% in extended trading hours on Tuesday after the company’s third-quarter revenues fell short of expectations and lowered its full-year sales outlook.

Third-quarter net income was $792 thousand or $0.03 per share, compared to net loss of $4.0 million or $0.16 per share last year. Analysts polled by Thomson Reuters expected a loss of $0.01 per share.

Sales for the third quarter rose to $139.4 million from $135.1 million last year. Analysts had a consensus revenue estimate of $140.39 million.

Looking forward, Comtech expects fiscal 2021 sales to be in a range of $580.0 million to $590.0 million. Previously, the company expected sales of $610.0 million to $620.0 million.

The company said it updated its outlook to primarily reflect a change in anticipated revenues in its Government Solutions segment due to the U.S. government’s April 2021 announcement to fully withdraw troops from Afghanistan as well as other program changes.

CMTL closed Tuesday’s trading at $25.66, up $0.95 or 3.84%, on the Nasdaq. The stock, however, slipped $2.02 or 7.89%, in the after-hours trade.