CalAmp Surges 7% As Q2 Results Top Estimates, Guides 2015 In Line

(RTTNews) - Shares of CalAmp Corp. (CAMP) surged more than seven percent in extended trading on Monday after the wireless communication products maker reported results for the second quarter that topped analysts' expectations.

The company also reported a profit for the quarter that increased from last year, reflecting improved margins and growth at wireless datacom business. Further, the company provided earnings and revenue guidance for the third quarter and full-year 2015, mostly in line with Street view.

CalAmp develops solutions that deliver data, voice, and video for critical networked communication and other applications

"Our solid performance in the second quarter was driven by ongoing strength in the Wireless Datacom segment, which generated record revenues of $50.2 million and led to an 11% year-over-year growth in non-GAAP earnings. During the quarter we experienced strong growth in energy revenues with renewed shipments to our solar power customer, coupled with robust demand for our Mobile Resource Management (MRM) products from fleet management and asset tracking customers," President and CEO Michael Burdiek said in a statement.

The Oxnard, California-based company posted net income of $3.28 million or $0.09 per share for the second quarter, higher than $2.84 million or $0.08 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $7.53 million or $0.21 per share, compared to $6.82 million or $0.19 per share in the year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter grew to $59.21 million from $58.81 million in the same quarter last year, and topped seven Wall Street analysts' consensus estimate of $59.06 million by a whisker.

Wireless datacom revenue grew 6 percent to $50.20 million from last year, while satellite revenue declined 22 percent to $9.01 million from the year-ago quarter, due to normal demand fluctuations in this business.

Consolidated gross margin for the quarter improved 90 basis points to 34.6 percent from last year's 33.7 percent.

Looking ahead to the third quarter, the company expects earnings in a range of $0.08 to $0.12 per share and adjusted earnings in the range of $0.21 to $0.25 per share, on projected quarterly revenues between $61 million and $65 million. Analysts currently expect the company to earn $0.24 per share on revenues of $65.17 million for the quarter.

For fiscal 2015, CalAmp forecasts earnings in a range of $0.36 to $0.42 per share and adjusted earnings in the range of $0.88 to $0.94 per share, on projected revenues between $250 million and $255 million. Street is currently looking for full-year 2015 earnings of $0.91 per share on annual revenues of $253.01 million.

"We are pleased with the momentum we are experiencing across our core portfolio, and anticipate that continued execution and investments in new applications and geographic expansion will drive growth into fiscal 2016 and beyond," Burdiek added.

CAMP closed Monday's regular trading session at $16.50, down $0.53 or 3.11% on a volume of 1.34 million shares. However, the stock surged $1.17 or 7.09% in after-hours trading.