Comtech Telecomm. Corp. (NASDAQ: CMTL) stock rose over 5.93% in the pre market session of December 5th, 2019 (Source: Google finance) after the company posted better than expected results for the first quarter of FY 20. The Bookings for the first quarter were strong at $135.6 million and the consolidated book to bill ratio stood at 0.8.
CMTL in the first quarter of FY 20 has reported the adjusted earnings per share of 26 cents, beating the analysts’ estimates for the adjusted earnings per share of 14 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5.9 percent to $170.27 billion in the first quarter of FY 20, beating the analysts’ estimates for revenue by 1.53%. From a geographic perspective, the net sales in the first quarter of fiscal 2022 from U.S. based customers were 76.9% of total net sales with 23.1% to international customers.
Additionally, CMTL has declared a quarterly cash dividend of $0.10 per share, which will be payable on February 14, 2020, to shareholders of record at the close of business on January 15, 2020.
Comtech expects its second quarter consolidated net sales to be in the range of $168 million to $170 million, with Adjusted EBITDA expected to be in the ranging of $19 million to approximately $21 million. Comtech’s fourth quarter of fiscal 2020 is still anticipated to be the peak quarter for its consolidated net sales, GAAP operating income, GAAP net income and Adjusted EBITDA.
CMTL has raised fiscal 2020 consolidated net sales target to a new range of approximately $712 million to $732 million as compared to the previous range of $710 million to $730 million. The company has also raised its Adjusted EBITDA target to a new range of $99 million to $103 million as compared to the previous range of $98 million to $102 million. Comtech’s Adjusted EBITDA target reflects approximately 14% of its expected fiscal 2020 consolidated net sales. The operating income, as a percentage of fiscal 2020 consolidated net sales, is projected to be approximate 7.7%. The company expects interest expense rate (including amortization of deferred financing costs) to be of approximately 4.6% or total interest expense of approximately $7.5 million. Comtech’s current and fiscal 2020 expected cash borrowing rate is approximately 4%. CMTL expects Non-GAAP EPS to be in the range of approximate $1.42 to $1.56, which represents an increase from the company’s previous targeted range of $1.35 to $1.50.