FBR Capital Reiterates a 'Market Perform' on Comtech Telecom (CMTL); Lower Revenues, but Decent Margins Drive Better EPS
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Price: $1.77 +0.57%
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates a 'Market Perform' on Comtech Telecom (NASDAQ: CMTL), PT $30.
FBR analyst says, "We reiterate our thesis that FY 2011 and FY 2012 could prove to be difficult years due to budget uncertainties and Middle East unrest. Two of the company’s main government contracts, MTS and BFT, are expected to see a large reduction in order rates, which we expect would have negative implications over the next nine to 12 months. Comtech raised FY 2011 EPS guidance, which we think is mainly due to stock buybacks and slightly higher margins seen this quarter..."
"Management slightly lowered its 2011 guidance for revenues from $620M–$625M to $615M and raised EPS guidance from $2.04–$2.10 to $2.12–$2.18. For 2011, we estimate revenues of $613M and EPS of $2.16."
For more ratings news on Comtech Telecom click here and for the rating history of Comtech Telecom click here.
Shares of Comtech Telecom closed at $24.24 yesterday.
FBR analyst says, "We reiterate our thesis that FY 2011 and FY 2012 could prove to be difficult years due to budget uncertainties and Middle East unrest. Two of the company’s main government contracts, MTS and BFT, are expected to see a large reduction in order rates, which we expect would have negative implications over the next nine to 12 months. Comtech raised FY 2011 EPS guidance, which we think is mainly due to stock buybacks and slightly higher margins seen this quarter..."
"Management slightly lowered its 2011 guidance for revenues from $620M–$625M to $615M and raised EPS guidance from $2.04–$2.10 to $2.12–$2.18. For 2011, we estimate revenues of $613M and EPS of $2.16."
For more ratings news on Comtech Telecom click here and for the rating history of Comtech Telecom click here.
Shares of Comtech Telecom closed at $24.24 yesterday.
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