First Eagle Investment Management, of which renowned investor Jean-Marie Eveillard (Trades, Portfolio) is senior investment adviser, has boosted its stake in company Comtech Telecommunications (CMTL, Financial), by 45.36%, GuruFocus Real Time Picks reported.
The new stake reported Oct. 31 reflects an increase of 530,970 shares, giving them 1,701,570 shares in total, worth 10.5% of the company. First Eagle has been building its position in Comtech since the fourth quarter of 2013.
Comtech serves the commercial and government communications markets and operates in three segments: telecommunications transmission, RF Microwave Amplifiers and mobile data communications. The company’s shares are up more than 25% over the past 12 months and closed at $38.40 per share on Friday, near a five-year high.
For its most recent fourth fiscal quarter, Comtech reported net sales of $89.2 million, compared to $84.4 million in the same quarter a year ago. Net earnings were $7.99 million, or $0.48 per diluted share, compared to $5.16 million, or $0.28 per diluted share in the same periods.
The growth was driven by sales increases in its telecommunications transmission and RF microwave amplifiers segments, offset in part by softness in its mobile data communications segment. The company’s CEO expected continued top and bottom-line growth in fiscal 2015.
Comtech’s 10-year revenue and growth history:
Comtech repurchased 397,778 shares of its common stock for $12.6 million in total in the fourth quarter. It had $13.7 million remaining in its stock repurchase program as of Oct. 8.
Cash on Comtech’s balance sheet totaled $154.5 million as of July 31.
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