Two Reasons to Buy CalAmp Stock on Today's Decline

Shares of CalAmp  (NASDAQ: CAMP  )  dropped more than 10% today after announcing first quarter earnings. The company actually beat out quarterly revenue and EPS estimates, but the issue was its guidance for the second quarter, which came in way below expectations.

According to Motley Fool analyst, Simon Erickson, the reason for CalAmp's lowered guidance was because two of its biggest customers, a solar OEM company and a Positive Train Control customer, had lighter orders in the first and second quarters, respectively. 

But is that reason enough for investors to bail out of CalAmp today? Simon says absolutely not. While there is some lumpiness in the company's earnings, he likes that CalAmp is going after some big markets right now. For instance, the company made $4 million in revenue from the insurance market, and has a deal with Caterpillar to gain traction in the heavy equipment market. If CalAmp can successfully break into those markets, the company will see big gains.

On top of all that, Simon likes CalAmp's application development platform, which will bring in recurring revenue from its customers and the software CalAmp sells them. Overall, he believes that this is a great time to get CalAmp on your radar. 

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (2) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3016663, ~/Articles/ArticleHandler.aspx, 8/30/2014 4:15:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement