The 10-second takeaway
For the quarter ended Nov. 30 (Q3), CalAmp beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
CalAmp reported revenue of $44.3 million. The two analysts polled by S&P Capital IQ anticipated a top line of $43.3 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $32.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The two earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS of $0.14 for Q3 were 133% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 60 basis points better than the prior-year quarter. Operating margin was 9.7%, 390 basis points better than the prior-year quarter. Net margin was 9.4%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $45.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $176.7 million. The average EPS estimate is $0.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 53 members out of 63 rating the stock outperform, and 10 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give CalAmp a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CalAmp is buy, with an average price target of $12.06.
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