Stock Alert: Comtech Drops 15% On Outlook

(RTTNews) - Shares of communications solutions provider Comtech Telecommunications Corp. (CMTL) are declining more than 15% after the company updated its full-year earnings targets, and lower quarterly results.

Comtech is uncertain about how long the current poor business conditions including travel restrictions and order delays continue, because of the coronavirus epidemic.

The company expects net sales for the full-year to be approximately $712 million, as compared to the prior range of $712.0 million to $732.0 million. Adjusted EPS is now expected to approximate $1.42, as compared to Comtech's previous view of $1.42 to $1.56. On average 4 analysts polled by Thomson Reuters expect earnings of $1.33 on revenue of $721.16 million.

The company reported a fall of earnings in its second quarter to $3.5 million or $0.14 per share from $7.83 million or $0.32 per share in the year-ago quarter. The company had incurred nearly $6 million in acquisition related expenses in the quarter.

Excluding items, earnings of $0.32 beat the average estimate of 4 analysts polled by Thomson Reuters at $0.22.

Net sales for the second quarter decreased to $161.65 million from $164.13 million in the same quarter a year ago.

CMTL is currently trading at $24.63 and has traded in the range of $20.94- $38 in the last 52-weeks.