CalAmp Earnings: Here’s Why Investors are Excited Now

CalAmp Corp. (NASDAQ:CAMP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.36%.

CalAmp Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 11.11% to $0.16 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Rose 22.55% to $53.75 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CalAmp Corp. reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.13. It beat the average revenue estimate of $52.41 million.

Quoting Management: Commenting on the first quarter results, Michael Burdiek, CalAmp’s President and Chief Executive Officer said, “We’re off to a strong start in fiscal 2014. In the first quarter, our Wireless Datacom segment revenue increased 29% year-over-year driven by continued momentum from our Mobile Resource Management (MRM) products and contributions from our Wireless Matrix acquisition that was completed at the beginning of the first quarter. The Wireless Datacom gross margin improved to 39.1% due mainly to higher margin subscription revenue from our Wireless Matrix acquisition. In addition, rapid progress on the integration front during the first quarter resulted in lower than expected operating expenses from the acquired operations of Wireless Matrix. In our Satellite segment, we saw improving margins along with some growth resulting in a meaningful impact to our bottom line results. We believe our unique hardware, software and service portfolio, supported by expanding channel partnerships with global reach, has given us the leverage to win an increasing share of Machine-to-Machine (M2M) market opportunities as they emerge.”

Key Stats (on next page)…

Revenue increased 11.08% from $48.39 million in the previous quarter. EPS decreased 0% from $0.16 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a profit $0.16. For the current year, the average estimate is a profit of $0.76, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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