Quick Win by the Algorithm: CMTL Positive Earnings and Consistent Dividends

Quick Win by the Algorithm

On March 10, 2017, the I Know First algorithm issued a bullish forecast for Comtech Telecommunications Corp. (CMTL). CMTL had a signal of 373.49 and a predictability of 0.45. As a result, in accordance with the forecast, the company’s stock increased by 31.93% in 3 months, producing a quick win by the algorithm.

quick win

Comtech Telecommunications Corp. designs and develops innovative services and products for advanced telecommunication solutions. Comtech sells its products to a wide variety of customers within the government and global commercial communications market. The company is headquartered in Huntington, New York and was founded in 1967. 

Quick Win

Comtech Telecommunications Corp. released third quarter earnings on June 8th, 2017. The anticipation and reporting of earnings resulted in a massive 30.32% jump in just two days. Originally, the stock jumped when an earnings call was scheduled for June 8. Afterwards, the stock rose again after actual reported earnings. Revenues were USD 127.79 million, an increase of over USD 3 million from Q3 of 2016. CMTL reported an EPS of 0.13, and a net income of .019. Additionally, their overall earnings were positive for the second consecutive quarter after losing money in Q1 of 2017.

CMTL believes that a tactical shift is the cause for its positive revenue streak. CMTL began moving its Government Solutions segment toward niche products, while also moving away from large commodity service contracts. These niche products produce higher margins, giving CMTL the ability to focus on less contracts.

Furthermore, CMTL announced a 0.10 per share quarterly cash dividend. This marks CMTL’s 28th consecutive quarterly dividend, showing investors that CMTL continues to be financially stable. CMTL will look to continue building upon its success and stability in the near future.

This bullish forecast on TGB was sent to current I Know First subscribers on March 10, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.