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Jan 31, 2024
Comtech Q2 2024 Earnings Report
Comtech's Q2 2024 performance reflected a slight year-over-year increase in net sales and significant growth in Adjusted EBITDA, driven by operational improvements, despite facing order delays and supply chain constraints.
Key Takeaways
Comtech reported a slight increase in consolidated net sales to $134.2 million compared to $133.7 million in the second quarter of fiscal 2023. Adjusted EBITDA grew by 33% year-over-year, achieving an 11.3% margin. The company also reported GAAP operating income of $3.0 million, marking the third consecutive quarter of positive operating income since fiscal 2021.
Consolidated net sales increased slightly year-over-year to $134.2 million.
Adjusted EBITDA increased by 33% year-over-year to $15.1 million, with an 11.3% margin.
GAAP operating income was $3.0 million, showing sequential improvement.
Backlog approximated $680 million, indicating healthy demand for Comtech's solutions.
Forward Guidance
Comtech anticipates that several lean initiatives and process improvement activities will contribute to improved financial performance. They are targeting net sales and Adjusted EBITDA for fiscal year 2024 to be better than fiscal 2023.
Positive Outlook
- Progress through One Comtech transformation.
- Implementation of lean initiatives and process improvement activities.
- Actions have already contributed to improved financial performance.
- Targeting net sales for fiscal year 2024 to be better than fiscal 2023.
- Targeting Adjusted EBITDA for fiscal year 2024 to be better than fiscal 2023.
Challenges Ahead
- Business conditions continue to be challenging.
- Operating environment is largely unpredictable.
- Anticipate some variability from time to time.
- Order delays and supply chain constraints largely stemming from the refinancing overhang.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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