Comtech (CMLT) Easily Beats Q4 Estiamtes, Initiates Dividend and Share Buyback Plan

Comtech Telecommunication Corp. (Nasdaq: CMTL) said Thursday that its profit in the fiscal fourth quarter more than doubled, while it added that it will begin paying a quarterly dividend of 25 cents per share. The maker of amplifiers and communications gear used by the U.S. military reported fourth-quarter earnings of $13.5 million or 43 cents per share, up from $6.2 million or 21 cents per share earned during the same quarter last year. Excluding one-time items, Comtech earned 73 cents per share in the quarter, 15 cents better than the analyst estimate of 58 cents per share. Revenue for the company more than doubled to $257 million in the three month period ended July 31 from $122 million last year, beating the market consensus of $237.53 million. "Our fourth quarter and fiscal 2010 results were strong and benefited significantly from the timing of shipments of multiple large orders from the U.S. Army," Fred Kornberg, President and Chief Executive Officer, stated. "Although our fiscal 2011 guidance reflects lower sales relating to these orders, all of our other product lines are expected to show year-over-year growth." Looking forward, Comtech sees earnings for the full year 2011 in the range of $1.90 to $2.00 per share on sales of $620 million to $630 million, compared to the Street’s consensus of $1.94 per share and $673.33 million respectively. The company said that it plans to pay a quarterly dividend of 25 cents per share on November 22 to shareholders of record on October 22, while planning to pay $1 per share per year. Comtech also authorized a $100 million shares repurchase plan. Shares of Comtech are up 5.61 percent to $26.00 in premarket movement on Friday.... Read more

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