CMTL) Stock performance report soaring

Comtech Telecommunications recorded a decline of 6.1% year-on-year sales in the third quarterfor a total of $128.08 million, missing the analyst consensus of $136.42 million.

The revenue breakdown includes $105.7 million from the United States and $22.4 million from international markets. Gross profit for the quarter fell 9.7% to $38.9 million and profit margin fell 130 basis points to 30.4%.

Despite the decline in sales, Comtech saw an improvement in operating losses, which narrowed to $3.47 million compared to a loss of $5.27 million in the same quarter last year. Additionally, the company saw adjusted earnings per share (EPS) of $0.20, beating analyst consensus of $0.08.

As of April 30, 2024, Comtech had $27.2 million in cash and equivalents. Operating cash flow for the first nine months of the fiscal year was negative at $(44.99) million.

Additionally, Comtech announced that on June 17, 2024, it concluded an agreement new loan worth USD 222.0 million with a new syndicate of lenders, with financing expected on or around June 18, 2024. This new credit facility, which matures on July 31, 2028, includes a commitment of $162.0 million of the term loan facility and a $60.0 million revolver loan facility .

Comtech Telecommunications (NASDAQ: CMTL) stock movement.

On Wednesday, CMTL shares surged 87.56% to close at $4.07, up 91.08% for the week. The trading volume amounted to 91,425,416 shares and was significantly higher than the average daily volume of 2.12 million.