(CMTL) - strong history of topping analysts' estimates, having done so for an amazing 13 quarters in a row

Comtech Telecommunications Corp. (CMTL), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 13 consecutive quarters by an average margin of 28.2%. In early-June, the company upped its fiscal 2006 revenue and profit guidance. Consensus estimates have been on the rise for CMTL. The company has a price-to-book ratio of 2.6, compared to 3.8 for the market. Full Analysis Comtech Telecommunications Corp. is engaged in the design, development, production, and marketing of products, systems and services for communications solutions. The company operates through three segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. CMTL has a strong history of topping analysts' estimates, having done so for an amazing 13 quarters in a row. During that period of time, the average margin of surprise was 28.2%. Earnings per share are projected to grow 17% over the next 3-5 years, with the industry forecasted to grow 16%. On Jun 7, 2006, CMTL posted third-quarter fiscal 2006 profits of $8.7 million, or 33 cents per share. With the Street calling for 29 cents per share, the company beat the consensus estimate by 13.8%. CMTL reported third-quarter fiscal 2005 profits of $8.4 million, or 32 cents per share. Net sales rose 18.0% to $89.0 million, versus $75.4 million in the prior-year period. For the nine months ended Apr 30, 2006, net sales were up 39.0% to $291.3 million. Profits amounted to $33.5 million, or $1.27 per share, compared to $25.6 million, or $1.00 per share, in the prior-year period. Fred Kornberg, President and Chief Executive Officer, stated, "Although it is premature to provide specific revenue and earnings guidance for next year, current signs are that fiscal 2007 should also be a record year: our fifth in a row." On Jun 8, 2006, the company raised its fiscal 2006 revenue and earnings per share guidance. Revenues are expected between $377 and $382 million, $12 million higher than the CMTL's previous outlook. Earnings per share are estimated between $1.56 and $1.58-eight cents greater than its prior projection. Consensus estimates have been on the rise for this quarter and next quarter, jumping 6.7% and 21.2%, respectively, over the past 60 days. Profit forecasts for this fiscal year and next are up 4.6% and 6.0%, respectively, over the same period of time. Three analysts revised their forecasts upward for this year, while two followed suit for next year. CMTL has a price-to-book ratio of 2.6, compared to the market's multiple, as represented by the S&P 500, of 3.8. The company's return on equity absolutely crushes that of the industry average-20% compared to 3%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home