Earnings call transcript: Comtech Q4 2026 loss narrows, but revenue misses
Comtech Telecommunications reported a narrower-than-expected loss in fiscal fourth-quarter 2026, but revenue fell short of Wall Street's forecast. The company posted adjusted EPS of minus $0.49, better than the expected minus $0.59, while revenue came in at $66.23 million versus the $109.3 million consensus estimate. Management has been shifting the business toward Allerium, its public safety unit, while classifying the satellite and space segment as discontinued operations. The company expects to close the sale of the satellite and space business to Gilat by the end of calendar 2026, subject to regulatory approval and other conditions. Once that closes, management plans to focus fully on Allerium and cyber services. Comtech's adjusted loss of $0.49 a share was 10 cents better than expected, a 16.95% positive surprise. The revenue miss was much larger, with sales of $66.23 million coming in $43.07 million below the $109.3 million forecast, or 39.41% short of expectations. The mixed result helps explain the muted stock reaction. Comtech shares ended the regular session at $1.28, down 1.54% from the previous close of $1.30. In after-hours trading, the stock held at $1.28, showing no immediate reaction to the earnings release. The company's fiscal 2026 results reflected a company in the middle of a strategic reset, with a focus on public safety and cyber services. Management highlighted a backlog of $520.4 million and total revenue visibility of about $862 million. The company expects about 40% of funded backlog to convert to revenue in fiscal 2027. Analysts anticipate sales decline in the current year, which aligns with management's cautious approach to guidance during the transition period. Comtech's adjusted EBITDA improved, and operating cash flow turned positive. Management said the business has now produced positive operating cash flow for six consecutive quarters. The company's adjusted loss of $0.49 a share was 10 cents better than expected, a 16.95% positive surprise. The revenue miss was much larger, with sales of $66.23 million coming in $43.07 million below the $109.3 million forecast, or 39.41% short of expectations. The mixed result helps explain the muted stock reaction. Comtech shares ended the regular session at $1.28, down 1.54% from the previous close of $1.30. In after-hours trading, the stock held at $1.28, showing no immediate reaction to the earnings release. The company's fiscal 2026 results reflected a company in the middle of a strategic reset, with a focus on public safety and cyber services. Management highlighted a backlog of $520.4 million and total revenue visibility of about $862 million. The company expects about 40% of funded backlog to convert to revenue in fiscal 2027. Analysts anticipate sales decline in the current year, which aligns with management's cautious approach to guidance during the transition period. Comtech's adjusted EBITDA improved, and operating cash flow turned positive. Management said the business has now produced positive operating cash flow for six consecutive quarters.
Investing.com South Africa
Subscribe for full access to Comtech Telecommunications's products in full detail 
