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CalAmp Corp Shares Up After Earnings Surprise

CalAmp-CorpWhile stock value of CalAmp Corp (NASDAQ: CAMP) closed down nearly 29% to $16.50 in Monday’s trading, shares rose more than 8% to $17.70 in yesterday’s after-hours trading with better than expected results, this after second quarter EPS of $0.21 was reported. Current trading for CalAmp Corp is up 20.06% to $19.81 per share. The 52-week range is between $14.74 and $34.85 per share.

Revenue was higher in the second quarter due to a strong wireless datacom segment offsetting a decline of 22% in satellite revenue. In the same period last year, Wireless Datacom revenue climbed from $47.2 million to $50.2 million while satellite revenue declined from last year’s second quarter of $11.6 million to $9 million in the latest quarter.

Compared to 33.7% in the second quarter of 2013, consolidated gross margin was up to 34.6%. According to a company spokesperson, EPS of $0.21 to $0.25 is expected for the third quarter, as well as revenue between $61 and $65 million, both lining up with estimates. For fiscal year 2015, EPS of $0.88 to $0.94 and revenues of $250 and $255 million are anticipated.

Analysts rate CalAmp Corp as a Buy, which is driven by several strengths that should have a significant impact on any weaknesses but also provide investors with better performance opportunities. Strengths of CalAmp Corp are seen in numerous areas to include increase in net income, revenue growth, cash flow from operations, growth in earnings per share, and a solid financial position with reasonable levels of debt.

CalAmp Corp develops and markets wireless technology solutions used to deliver voice, video, and data for various applications to include critical networked communications. CalAmp Corp operates two primary business segments, Satellite that focuses on the North American Direct Broadcast Satellite (DBS) market and Wireless DataCom, which serves customers in commercial, government, and industrial sectors.

In fiscal year 2015, CalAmp Corp anticipates that consolidated revenues will gain momentum throughout the year with revenue from the main heavy equipment OEM customer pushing beyond $10 million in the second half of the year. Continued execution, investments in new applications, and geographic growth will reportedly drive growth in fiscal year 2016.

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