{"id":84723,"date":"2011-06-10T00:43:46","date_gmt":"2011-06-09T16:43:46","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/analyst-investors-likely-to-give-comtech-a-pass-on-weak-3q-mobile-data-results\/"},"modified":"2011-06-10T00:43:46","modified_gmt":"2011-06-09T16:43:46","slug":"analyst-investors-likely-to-give-comtech-a-pass-on-weak-3q-mobile-data-results","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/analyst-investors-likely-to-give-comtech-a-pass-on-weak-3q-mobile-data-results\/","title":{"rendered":"Analyst: Investors Likely to give Comtech a Pass on Weak 3Q Mobile Data Results"},"content":{"rendered":"<p>[06-09-11] Analysts saw mixed results in <strong>Comtech<\/strong>\u2019s third quarter 2011 fiscal report as MTS hardware delays caused revenues to fall short of expectations while the company\u2019s bottom line results exceeded market consensus.<\/p>\n<p>&nbsp;&nbsp;&nbsp; In its latest financial results issued June 8, Comtech reported $131 million in revenues \u2014 11 percent below Wall Street guidance \u2014 and EBITDA of $29 million, which beat projections by 5 percent. Comtech said its mobile data segment\u2019s third-quarter performance was disappointing, even after executives made efforts to lower expectations throughout the year.<br \/>\n<b>&nbsp;&nbsp;&nbsp; Raymond James<\/b> analyst Chris Quilty said that he sees a bright side to Comtech\u2019s results. \u201cComtech\u2019s gross margin saved the day and its weakness resulted from vendor component delays, however, the postponed shipments are expected to ship during the fourth quarter of 2011. Mobile Data revenues were 32 percent below our estimate, but we believe roughly $30 million was delayed,\u201d said Quilty. \u201cWe expect investors to give Comtech a pass on weak mobile data results \u2014 a segment that has largely been written off. Investors will likely focus on the weak revenue outlook and solid margins of Comtech\u2019s telecom segment\u201d<br \/>\n&nbsp;&nbsp;&nbsp; Comtech\u2019s telecom sales fell 10.4 percent below targets due to a decline in government orders and a sequential decline in OTH shipments. Quilty believes that the tight congressional budgetary environment played a role in the drop, especially after Comtech telecom reported two straight quarters of growth earlier this year.<br \/>\n&nbsp;&nbsp;&nbsp; \u201cSales margins were in-line with expectations at 24.7 percent against our estimate of 24.8 percent, which puts Comtech on track to achieve its full-year target of low 20s EBIT margins,\u201d said Quilty.<br \/>\nComtech management warned that its fourth quarter 2011 sales are likely to be \u2018slightly higher\u2019 on a sequential basis \u2014 a disappointment relative to analysts\u2019 forecast of 18 percent sequential growth, according to Quilty. \u201cAnalysts also will continue to grumble about Comtech\u2019s merger and acquisition strategy, which has never quite been accepted by investors.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[06-09-11] Analysts saw mixed results in Comtech\u2019s third quarter 2011 fiscal report as MTS hardware delays caused revenues to fall short of expectations while the company\u2019s bottom line results exceeded market consensus. &nbsp;&nbsp;&nbsp; In its latest financial results issued June 8, Comtech reported $131 million in revenues \u2014 11 percent below Wall Street guidance \u2014 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-84723","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/84723"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=84723"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/84723\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=84723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=84723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=84723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}