Tom Reese/Paul Rubillo, Dividend.com
Comtech Telecommunications Corp. (CMTL) said Monday that its fiscal second quarter profit fell 50% from the year-ago period, sending its shares falling over 35% in morning trading Tuesday.
The Melville, New York-based company, which produces telecommunications equipment, reported second quarter net income of $12.8 million, or 46 cents per share, a 50% drop from the year-ago quarter, when it earned $25.5 million, or 91 cents per share. Sales for the quarter dropped 5.4% to $143.9 million from $152 million in the year-ago period.
On average, Wall Street analysts expected profits of 44 cents per share on sales of $151.2 million.
The Bottom Line
Shares of CMTL are now more than 50% off all-time highs of $54 a share, hit in October of 2007. The stock has technical support in the $22 price range. If that fails, we may test the $11-13 zone next.
If the shares can stage a rebound, we see overhead resistance in the $34-35 price area. We do not currently rate this non-dividend paying stock, but we do follow the stock and the telecom equipment sector closely.
Comtech Telecommunications Corp. (CMTL) does not currently pay a dividend.
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