Telecom equipment maker Comtech Telecommunications Corp gave fiscal 2010 outlook above market estimates citing a strong backlog, sending its shares up 8 percent.
For the year ending July 31, 2010, profit is expected to be $2.10 to $2.20 per share, on revenue of $820 million to $840 million, the company said on a conference call with analysts.
Analysts on average were expecting earnings of $2.0 per share, on revenue of $790.1 million, according to Reuters Estimates.
The company expects first-quarter earnings and revenue to be similar to those in the fourth quarter of fiscal 2009. It had posted a profit of 21 cents per share on revenue of $122 million for the fourth quarter.
We expect our earnings to be significantly back-end loaded, based primarily on estimated delivery schedule relating to the movement tracking system backlog, Chief Executive Fred Kronberg said.
Comtech has a backlog of about $500 million, it said.
The company's mobile data unit supplies movement tracking system to the U.S. Army.
Shares of Melville, New York-based Comtech, which have gained about 61 percent over the last six months, were up $2.25 at $36.33 in morning trade Thursday on Nasdaq. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Gopakumar Warrier)