Comtech Stock Soars On $50M US Navy Contract; Retail’s Extremely Bullish

Shares of Comtech Telecommunications Corp. ($CMTL) were up 8.3% on Thursday morning (10:20 a.m. ET) after the company said it was awarded a contract by the U.S. Navy for its satellite communications tech valued at more than $50 million, lifting retail sentiment.

Under the terms of the contract, which has a four-year period, Comtech will provide the U.S. Navy with “SLM-5650B” satellite communications modems, upgrade kits, firmware, and technical support.

Comtech’s modems support communications over commercial and military satellite networks and are used for “interoperability” across Navy platforms and shore sites, said the company’s statement.

Retail sentiment on the stock turned ‘extremely bullish’ (82/100) from ‘neutral’ (53/100) a day ago. Accompanying message volumes rose from ‘low’ (43/100) to ‘high’ (60/100) on Thursday morning.

Multiple U.S. Navy programs already use “thousands of Comtech satellite communications modems,” said Comtech, adding it has received orders worth $2 million to date.

Comtech is due to report its Q1 2025 earnings on Dec 5. Wall Street analysts expect the company to post $0.39 in earnings per share (EPS) on revenues of $125.53 million.

Comtech, in general, has been banking on the trend of defense organizations moving away from large, fixed legacy communications systems to alternatives that are more agile and distributed, tapping multiple networks to route data traffic, according to the company’s website.

The market for low earth orbit (LOE), in particular, is worth an estimated $5.4 billion and projected to grow to over $25 billion by 2032, with North America projected to lead this growth. 

Comtech stock has climbed 52.8% in the last six months. 

For updates and corrections, email newsroom@stocktwits.com