Comtech Telecommunications (NASDAQ: CMTL) stock surged during intraday trading Wednesday following the release of its third-quarter FY24 earnings report and the announcement of a new credit facility.
Comtech Telecommunications reported a 6.1% year-on-year decline in third-quarter sales, totaling $128.08 million, missing the analyst consensus estimate of $136.42 million.
The revenue breakdown includes $105.7 million from the United States and $22.4 million from international markets. Gross profit for the quarter decreased by 9.7% to $38.9 million, with the profit margin contracting by 130 basis points to 30.4%.
Despite the sales decline, Comtech reported an improvement in its operating loss, which narrowed to $3.47 million compared to a loss of $5.27 million in the same quarter last year. Additionally, the company posted an adjusted earnings per share (EPS) of $0.20, beating the analyst consensus estimate of $0.08.
As of April 30, 2024, Comtech held $27.2 million in cash and equivalents. The operating cash flow for the first nine months of the fiscal year was negative, at $(44.99) million.
Additionally, Comtech announced that on June 17, 2024, it entered into a new $222.0 million credit facility with a new syndicate of lenders, with funding expected around June 18, 2024. This new credit facility, maturing on July 31, 2028, includes a committed $162.0 million term loan facility and a $60.0 million revolver loan facility.
Comtech Telecommunications (NASDAQ: CMTL) Stock Movement
On Wednesday, CMTL stock soared 87.56%, closing at $4.07, marking a 91.08% increase for the week. The trading volume was 91,425,416 shares, significantly higher than the average daily volume of 2.12 million.
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