Comtech Sinks 15% on Weak Outlook, CEO Says Worried About Economy Like Elon and Jamie
2022.06.10 00:11
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.
