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.
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry. Read Full Bio
