Comtech Ensures Additional Revenues With US Army Contract

Comtech Telecommunications Corp. (NASDAQ:CMTL) recently announced that its Command & Control Technologies group, which is part of the Government Solutions segment, received additional funding worth $14.7 million from the U.S. Army. Per the deal, Comtech will provide Very Small Aperture Terminals (VSAT) to support the warfighter’s on-going capabilities for mission-critical success. The contract reinforces the existing business relationship with the U.S. Army and ensures a steady revenue stream for Comtech.

The Command & Control Technologies group provides mission-critical, highly-mobile C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions to help bridge the security gap in an era of information-based, network-centric warfare. The Government Solutions segment serves large government end-users that require mission-critical technologies and systems.

VSAT is a satellite communications system that uses two-way ground station to transmit and receive data. It is usually less than three meters tall and is capable of transmitting data across a wide geographical area.

Comtech has created a niche market for highly secure wireless solutions to defend global security and improve public safety. The company continues providing 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.

With a significant exposure to large growing end markets, characterized by emerging technology trends for secure wireless communications, Comtech’s earnings estimates for fiscal 2019 have increased a healthy 37.1% in the past year to 96 cents.

However, the company has recorded an average decline of 28.7% in the past year while the industry has rallied 17.1%.

Comtech currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Harris Corporation (NYSE:HRS) , Juniper Networks, Inc. (NYSE:JNPR) and Motorola Solutions Inc. (NYSE:MSI) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank(Strong Buy)stocks here.

Harris has a long-term earnings growth expectation of 8%. It beat earnings estimates in each of the trailing four quarters, the average being 3%.

Juniper has a long-term earnings growth expectation of 6.2%. It surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 15.4%.

Motorola has a long-term earnings growth expectation of 7.7%. It surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 9.1%.

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