Comtech Wins $3.6M Follow-On Contract Award For RF Amplifiers

Comtech Telecommunications Corp. (NASDAQ:CMTL) recently announced that its subsidiary, Comtech PST Corp, which is a part of its Government Solutions segment, secured a follow-on contract award from a leading medical instrumentation provider. Valued at $3.6 million, the contract was received during fourth-quarter fiscal 2018.

Per the deal, the company will provide solid-state, high-power RF amplifiers for medical application. The use of these amplifiers by one of the world’s major suppliers of image-guided radiotherapy (IGRT) and image-guided intensity modulated radiation therapy (IMRT) medical equipment facilitates them to offer state-of-the-art solutions for cancer treatment. Notably, these superior forms of treatment help in minimizing harm to adjacent healthy tissue by delivering versatile complex doses of radiation with higher accuracy and speed.

Our Take

Comtech has successfully created a niche market for highly secure wireless solutions to defend global security and improve public safety. The company’s continuous focus on providing market-leading products for messaging, location and deployable wireless communications gives it a competitive advantage over its peers. Comtech also offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to the users. Furthermore, Comtech’s products are sold to a diverse customer base that allows it to mitigate the risks associated with a particular market.

In the past three months, this Zacks Rank #1 (Strong Buy) company has outperformed the industry it belongs to. The stock has gained 8.5% compared with the industry’s 5.5% upside.

Moreover, Comtech has managed to impress investors with its recent earnings streak, wherein its bottom line has surpassed estimates in each of the trailing four quarters. We believe the company’s strong focus in developing innovative products, systems and services for advanced communications solutions along with its market diversity bodes well for future growth.

Other Stocks to Consider

Some other top-ranked stocks from the same space include Motorola Solutions, Inc. (NYSE:MSI) , Ubiquiti Networks, Inc. (NASDAQ:UBNT) and AMETEK, Inc. (NYSE:AME) . All these three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Motorola Solutions surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 12.09%.

Ubiquiti Networks outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 8.88%.

AMETEK exceeded estimates in the preceding four quarters, with an average positive earnings surprise of 6.03%.

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