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Comtech Sinks 15% on Weak Outlook, CEO Says Worried About Economy Like Elon and Jamie

Published 06/09/2022, 12:53 PM
Updated 06/09/2022, 05:00 PM
© Reuters.  Comtech Sinks 15% on Weak Outlook, CEO Says Worried About Economy Like Elon and Jamie

© Reuters. Comtech Sinks 15% on Weak Outlook, CEO Says Worried About Economy Like Elon and Jamie

By Davit Kirakosyan

Comtech Telecommunications Corp (NASDAQ:CMTL) shares plunged around 15% after-hours following the company’s reported Q3 results. While EPS of $0.06 came in line with the consensus estimate, and revenue of $122.1 million was just slightly below the consensus estimate of $122.44 million, the company’s Q4 guidance missed the expectations.

Given market conditions and near-term uncertainties, the company adjusted its Q4 guidance, expecting revenue of $123 million, below the consensus estimate of $157.06 million.

"While the long-term prospects for our business are strong, the near-term economic environment promises to be challenging. Elon Musk isn’t the only person with a 'super bad feeling' about the economy," CEO Mike Porcelain commented. "Additionally, Jamie Dimon’s warning that a 'hurricane is right out there down the road coming our way' may prove to be true. I too, feel that the economic backdrop is more uncertain than it was earlier in our fiscal year ---- as a result ---- I am adjusting our Q4 and fiscal 2022 targets."

Shares of CMTL were down 48% year-to-date into the results.

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