Why CalAmp Corp Stock Roared Higher
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Shares of wireless communications products and solutions developer CalAmp surged higher by as much as 26% after the company reported better-than-expected second-quarter earnings results following the closing bell last night.
Why it's happening?
For the quarter, CalAmp announced that revenue rose a modest 0.7% to $59.2 million, led by wireless datacom sales, which rose 6% to $50.2 million, and hindered by satellite sales which dipped 22% to $9 million. Consolidated gross margin rose by 90 basis points to 34.6% from the year-ago period, which ultimately helped push its adjusted EPS to $0.21, $0.02 higher than the $0.19 per-share profit it reported at this time last year. By comparison, Wall Street had been expecting $59.1 million in sales and just $0.19 in EPS.
Looking ahead, CalAmp offered guidance of $61 million to $65 million in sales and $0.21 to $0.25 in EPS for the third quarter, and $250 million to $255 million in full-year sales and $0.88 to $0.94 in full-year EPS. Comparably, these projections fell in-line with the Street's forecast for $65 million in sales and $0.24 in EPS for Q3, and $252.7 million in sales and $0.91 in EPS for the full-year.
Following its report research firm Macquarie upgraded CalAmp to a rating of outperform from neutral, but maintained a price target of $23 on the stock.
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The article Why CalAmp Corp Stock Roared Higher originally appeared on Fool.com.Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends CalAmp. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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