By Owen Tucker-Smith
Shares of Comtech Telecommunications plunged Monday morning after the company posted a first-quarter loss worse than Wall Street expectations and disclosed a leadership shakeup.
Shares in the Arizona-based company were recently down 17.9% to $3.39 in premarket trading. The stock is down by nearly 50% over the past year.
Comtech said its loss widened to $148.4 million, or $5.29 a share, during the first quarter, from a loss of $1.44 million, or 11 cents a share, during the same period a year ago. Analysts surveyed by FactSet had predicted a loss of 35 cents a share for the quarter.
Sales fell to $115.8 million from $151.9 million last year. Analysts had expected $125.5 million.
Comtech said Ken Traub would take over as chief executive effective immediately, succeeding John Ratigan. Traub has served on the board since the end of October and was named executive chairman on Nov. 27.
Ratigan had led the company since Oct. 28, and served as interim CEO since March.
The company said Traub is leading a comprehensive transformation of the company, including efforts to optimize staffing, a focus on its Terrestrial & Wireless Networks segment, and a comprehensive review of strategic alternatives.
Comtech didn't provide fiscal guidance. Traub labeled the company's recent performance as unsatisfactory.
Write to Owen Tucker-Smith at owen.tucker-smith@wsj.com
(END) Dow Jones Newswires
January 13, 2025 08:44 ET (13:44 GMT)
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