What: Shares of wireless communications and Internet of Things company CalAmp (CAMP 5.61%) jumped 17%, according to S&P Capital IQ data, as investors reacted favorably to the company's beating analyst estimates for earnings and revenue in its fourth-fiscal-quarter earnings report.
So what: As the chart shows, the full gain of CalAmp's April was due to CalAmp's earnings. And the company did not disappoint. CalAmp reported fourth-quarter revenue up 16% year over year, to $69.2 million, ahead of analysts' estimates for $68 million as the company's top-line result was driven by its core Wireless DataCom division that grew 23% during that timeframe. On a GAAP basis, the company grew its EPS figure 125% year over year to $0.18.
As far as guidance goes, the company expects its upcoming first quarter's revenue to be lower than last quarter's haul, with a range of $63 million to $67 million, but that's mostly due to a large shipment to Caterpillar that occurred during the recently reported fourth quarter. On a year-over-year basis, however, the midpoint of CalAmp's next-quarter guidance would increase 10.2% from last year's corresponding quarter.
Now what: For investors, perhaps the most intriguing announcement occurred before CalAmp's well-received earnings report -- that CalAmp will purchase privately held Crashboxx for $1.5 million in cash and future earn-out payments. Crashboxx further bolster's CalAmp's usage-based insurance business line that could grow to be a strong supporting business to CalAmp's Wireless DataCom business.
Crashboxx specializes in driver-behavior, crash-detections, and damage estimation technologies and fits in line with CalAmp's broader strategy of IoT- and machine-to-machine-based communication with a focus on transportation. The deal signifies that CalAmp is serious about growing its usage-based insurance business. If the company is able to do so, investors could be further rewarded.
