CAMP: CalAmp Earnings Rise on Recent Acquisitions, but Projections Fall Short of Street Expectations 7/1/14
CalAmp Corp. issued a disappointing outlook for the current quarter, saying satellite revenue is expected to fall short of earlier projections.
Shares plunged nearly 14% to $18.98 in recent after-hours trading on the news.
The Oxnard, Calif., company said it expects per-share earnings between 17 cents and 21 cents on revenue of $57 million to $61 million. Analysts surveyed by Thomson Reuters expected 22 cents a share on $62.5 million in revenue.
The company, however, said it expects revenue to pick up in the second half of the fiscal year, with its wireless datacom segment leading the growth as shipments were resumed to a key customer in the solar power industry.
For the most recent quarter ending May 31, CalAmp posted a profit of $2.7 million, or seven cents a share, up from $1.7 million, or five cents a share, a year earlier.
Excluding stock-based compensation and other items, adjusted profit rose to 19 cents a share from 16 cents.
Revenue rose nearly 10% to $59 million.
In April, CalAmp said it expected adjusted profit of 17 cents to 21 cents a share on revenue of $56 million to $60 million.
Demand from its mobile resource management drove a 17% year-over-year jump in the company's wireless datacom segment, which offset a 14% drop in satellite revenue.
Gross margin narrowed to 34.3% from 34.4% a year earlier.
Through Tuesday's closing, the company stock was up nearly 47% over the past 12 months.
Write to Maria Armental at maria.armental@wsj.com
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CalAmp Corp. issued a disappointing outlook for the current quarter, saying satellite revenue is expected to fall short of earlier projections.
Shares plunged nearly 14% to $18.98 in recent after-hours trading on the news.
The Oxnard, Calif., company said it expects per-share earnings between 17 cents and 21 cents on revenue of $57 million to $61 million. Analysts surveyed by Thomson Reuters expected 22 cents a share on $62.5 million in revenue.
The company, however, said it expects revenue to pick up in the second half of the fiscal year, with its wireless datacom segment leading the growth as shipments were resumed to a key customer in the solar power industry.
For the most recent quarter ending May 31, CalAmp posted a profit of $2.7 million, or seven cents a share, up from $1.7 million, or five cents a share, a year earlier.
Excluding stock-based compensation and other items, adjusted profit rose to 19 cents a share from 16 cents.
Revenue rose nearly 10% to $59 million.
In April, CalAmp said it expected adjusted profit of 17 cents to 21 cents a share on revenue of $56 million to $60 million.
Demand from its mobile resource management drove a 17% year-over-year jump in the company's wireless datacom segment, which offset a 14% drop in satellite revenue.
Gross margin narrowed to 34.3% from 34.4% a year earlier.
Through Tuesday's closing, the company stock was up nearly 47% over the past 12 months.
Write to Maria Armental at maria.armental@wsj.com
Access Investor Kit for CalAmp Corp.
Visit http://www.companyspotlight.com/partner?cp_co...1281261099
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
