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Shares of wireless communications products and solutions developer CalAmp (CAMP -4.59%) surged higher by as much as 26% after the company reported better-than-expected second-quarter earnings results following the closing bell last night.
Why it's happening?
For the quarter, CalAmp announced that revenue rose a modest 0.7% to $59.2 million, led by wireless datacom sales, which rose 6% to $50.2 million, and hindered by satellite sales which dipped 22% to $9 million. Consolidated gross margin rose by 90 basis points to 34.6% from the year-ago period, which ultimately helped push its adjusted EPS to $0.21, $0.02 higher than the $0.19 per-share profit it reported at this time last year. By comparison, Wall Street had been expecting $59.1 million in sales and just $0.19 in EPS.
Looking ahead, CalAmp offered guidance of $61 million to $65 million in sales and $0.21 to $0.25 in EPS for the third quarter, and $250 million to $255 million in full-year sales and $0.88 to $0.94 in full-year EPS. Comparably, these projections fell in-line with the Street's forecast for $65 million in sales and $0.24 in EPS for Q3, and $252.7 million in sales and $0.91 in EPS for the full-year.
Following its report research firm Macquarie upgraded CalAmp to a rating of outperform from neutral, but maintained a price target of $23 on the stock.
