CAMP: Two Reasons to Buy CalAmp Stock on Today's D
Post# of 776
Posted On: 07/04/2014 1:13:55 PM
CAMP: Two Reasons to Buy CalAmp Stock on Today's Decline
By Mark Reeth and Simon Erickson
July 2, 2014
Shares of CalAmp (NASDAQ: CAMP ) dropped more than 10% today after announcing first quarter earnings. The company actually beat out quarterly revenue and EPS estimates, but the issue was its guidance for the second quarter, which came in way below expectations.
According to Motley Fool analyst, Simon Erickson, the reason for CalAmp's lowered guidance was because two of its biggest customers, a solar OEM company and a Positive Train Control customer, had lighter orders in the first and second quarters, respectively.
But is that reason enough for investors to bail out of CalAmp today? Simon says absolutely not. While there is some lumpiness in the company's earnings, he likes that CalAmp is going after some big markets right now. For instance, the company made $4 million in revenue from the insurance market, and has a deal with Caterpillar to gain traction in the heavy equipment market. If CalAmp can successfully break into those markets, the company will see big gains.
On top of all that, Simon…
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By Mark Reeth and Simon Erickson
July 2, 2014
Shares of CalAmp (NASDAQ: CAMP ) dropped more than 10% today after announcing first quarter earnings. The company actually beat out quarterly revenue and EPS estimates, but the issue was its guidance for the second quarter, which came in way below expectations.
According to Motley Fool analyst, Simon Erickson, the reason for CalAmp's lowered guidance was because two of its biggest customers, a solar OEM company and a Positive Train Control customer, had lighter orders in the first and second quarters, respectively.
But is that reason enough for investors to bail out of CalAmp today? Simon says absolutely not. While there is some lumpiness in the company's earnings, he likes that CalAmp is going after some big markets right now. For instance, the company made $4 million in revenue from the insurance market, and has a deal with Caterpillar to gain traction in the heavy equipment market. If CalAmp can successfully break into those markets, the company will see big gains.
On top of all that, Simon…
To keep reading, click here, it's free or login here
http://www.fool.com/investing/general/2014/07...sBoxAnchor
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