Comtech Telecommunications Corp. (CMTL - Free Report) recently announced that Enterprise Technologies group, part of its Commercial Solutions segment, procured a multi-year $1.9 million order from an unnamed domestic telecom service provider. Per the deal, received during first-quarter fiscal 2019, the company will provide hosted data assistance services for value-added location-based features.
At the same time, Comtech announced that Command & Control Technologies group, part of its Government Solutions segment, has secured additional funding for Option Year One to the tune of $2.3 million on an existing contract. Per the deal, the company to provide the State of Maryland Department of Human Services with IT-related services for maintaining and supporting the employee base. To date, Comtech has received $6.7 million of funded orders against the $11.3 million contract ceiling.
The Command & Control Technologies group provides mission-critical, highly-mobile C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions. With the deals, the company has ensured a steady revenue stream for healthy growth momentum.
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 users.
Customers depend on Comtech’s commercial wireless applications, which are based on innovative mobile cloud computing services like 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. Earnings estimates of the company have been revised up 26.3% in the past month to 96 cents, representing bullish investor sentiments about the long-term growth of the company.
With diligent execution of operational plans, Comtech has outperformed the industry in the past year with an average return of 53% compared with 24.4% growth for the latter.
Comtech currently sports a Zacks Rank #1 (Strong Buy). Some other stocks in the broader industry worth considering are Ubiquiti Networks, Inc. (UBNT - Free Report) , sporting a Zacks Rank #1, ATN International, Inc. (ATNI - Free Report) and Windstream Holdings, Inc. (WIN - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ubiquiti has a long-term earnings growth expectation of 18.6%. It delivered an average positive earnings surprise of 9% in the trailing four quarters.
ATN International has trumped earnings estimates thrice in the trailing four quarters with an average positive surprise of 146.1%.
Windstream surpassed earnings estimates twice in the trailing four quarters recording an average positive surprise of 23.5%.
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