Comtech Telecom 1Q results beat Street, shares up

MELVILLE, N.Y., (AP) — Shares of Comtech Telecommunications Corp. jumped Friday after the communications equipment maker's fiscal first-quarter results blew away Wall Street's expectations.

The company also raised its earnings guidance for its full fiscal year.

Comtech's stock rose $4.86, or 11 percent, to $48.88.

For the three months ended Oct. 31, Comtech's profit rose 52 percent to $22.4 million, or 80 cents per share, from $14.7 million, or 54 cents per share in the same period last year.

Excluding certain one-time items, Comtech said it earned $1.07 per share.

Analysts were looking for a much more modest 54 cents per share, according to a Thomson Reuters survey.

Sales increased 67 percent to $191.9 million, beating Wall Street's view for $170.5 million in revenue.

The company said all of its core business segments improved in the quarter. Results also got a boost from the acquisition of Radyne Corp., which closed in August.

"Although general business conditions are more difficult than usual, our first quarter results were outstanding," said Chief Executive Fred Kornberg. "We continue to expect that fiscal 2009 will be another record year."

Comtech boosted its adjusted profit outlook for 2009 by 5 cents to $3.31 to $3.35 per share, but cut the high end of its sales guidance. The company forecast $740 million to $748 million in revenue, tighter than the $740 million to $755 million range it provided earlier.

Analysts are currently looking for an adjusted profit of $2.95 per share on $747.9 million in sales.