Back to top

Comtech Secures Army Orders Worth $14.2M, Expands Footprint

Read MoreHide Full Article

Comtech Telecommunications Corp. (CMTL - Free Report) has announced that Command & Control Technologies group, part of its Government Solutions segment, procured orders totaling $14.2 million from the U.S. Army. The deal, received during third-quarter fiscal 2018, entails the company to provide satellite terminals and networking equipment.

The Command & Control Technologies group, which provides mission-critical, highly-mobile C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions, also secured a contract from a major U.S. prime contractor during the quarter for the supply of multiple XY satellite tracking antennas to support a critical government program.

Furthermore, this manufacturer of innovative products, systems and services for communications solutions announced that during the quarter, Enterprise Technologies group, which is part of the company’s Commercial Solutions segment, received a professional services renewal agreement worth $1.6 million, from a leading automotive market provider for various location-based services. This reflects Comtech’s growing footprint in the automotive industry as well.

Comtech has created a niche market for highly secure wireless solutions to defend global security and improve public safety. The company continues to provide market-leading products for messaging, location and deployable wireless communications. It offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to the users.

Customers depend on Comtech’s commercial wireless applications, which are based on innovative mobile cloud computing services including text messaging, public safety solutions, hyper-local search, workforce tracking, social applications, and telematics and navigation.

Federal government agencies also depend on Comtech’s cyber security expertise, professional consulting services and highly secure deployable satellite solutions for mission-critical communications.

Comtech delivers competitive, reliable and secure solutions, whether be it for connecting people to life-saving emergency services, providing a highly secure link back to government agencies or connecting back to critical enterprise data.

With such order gains, Comtech has significantly outperformed the industry with an average return of 36.5% against a decline of 1.4% for the latter, in the past three months.

Comtech has a long-term earnings growth rate expectation of 5%. It beat earnings estimates in each of the trailing four quarters, the average being 111.4%.

Comtech currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include Motorola Solutions, Inc. (MSI - Free Report) , Ubiquiti Networks, Inc. (UBNT - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.           

Motorola has an expected long-term earnings growth rate of 8%. It exceeded earnings estimates in each of the trailing four quarters, the average being 12.1%.

Ubiquiti Networks has an expected long-term earnings growth rate of 18.6%. It exceeded earnings estimates thrice in the trailing four quarters with an average of positive surprise of 8.9%.

Rambus has an expected long-term earnings growth rate of 10%. It exceeded earnings estimates twice in the trailing four quarters with an average of positive surprise of 4.9%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

More from Zacks Analyst Blog

You May Like

Published in