The 10-second takeaway
For the quarter ended May 31 (Q1), CalAmp beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share dropped. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins contracted, net margins dropped.
CalAmp reported revenue of $53.7 million. The five analysts polled by S&P Capital IQ expected to see a top line of $52.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $43.9 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 $0.16. The five earnings estimates compiled by S&P Capital IQ anticipated $0.13 per share. Non-GAAP EPS of $0.16 for Q1 were 11% lower than the prior-year quarter's $0.18 per share. GAAP EPS of $0.05 for Q1 were 64% lower than the prior-year quarter's $0.14 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 34.4%, 320 basis points better than the prior-year quarter. Operating margin was 5.4%, 440 basis points worse than the prior-year quarter. Net margin was 3.1%, 640 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $54.8 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $228.2 million. The average EPS estimate is $0.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 81 members out of 91 rating the stock outperform, and 10 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 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 $14.65.
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