Comtech Telecommunications Corp.'s stock rose Friday after the maker of amplifiers and communications gear used by the U.S. military posted strong fourth-quarter results and initiated a quarterly dividend.
THE SPARK: Late Thursday, the company based in Melville, N.Y. said its quarterly earnings and revenue both more than doubled. Comtech also said it would begin paying a quarterly dividend of 25 cents per share.
BIG PICTURE: The Commerce Department reported Friday that capital goods in August climbed 4.1 percent, signaling a rebound in business spending after orders fell 5.3 percent in July. U.S. companies invested last month in computers, communications equipment and machinery, which could bode well for businesses like Comtech.
SHARE ACTION: Shares of Comtech added $1.66, or 6.7 percent, to $26.28 in afternoon trading. Over the past year, the stock has traded in a range of $20.19 to $38.39.
