Please ensure Javascript is enabled for purposes of website accessibility

Why CalAmp Corp. Shares Popped Today

By Steve Symington - Apr 19, 2017 at 1:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The M2M company's stock jumped after another great quarter.

What happened

Shares of CalAmp Corp. (CAMP 3.44%) were up 13.9% as of 1:00 p.m. EDT Wednesday after the machine-to-machine (M2M) communications specialist announced strong fiscal fourth-quarter 2017 results.

So what

Quarterly revenue climbed 21.6% year over year, to $86.1 million, and translated to adjusted earnings of $9.9 million, or $0.28 per diluted share. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined 6.6%, to $12.8 million.

For perspective, each of those figures arrived well within CalAmp's guidance, which called for revenue of $84 million to $89 million, adjusted EBITDA of $11 million to $15 million, and adjusted net income per share of $0.25 to $0.31. But Wall Street was only looking for adjusted net income of $0.27 per share on revenue of $86 million.

CalAmp headquarters

Image source: CalAmp.

CalAmp CEO Michael Burdiek stated, "As we close out fiscal 2017, we are pleased with the progress we have made on a number of financial and business objectives, which have helped set the stage for long-term growth and profitability."

Now what

In addition, CalAmp told investors to expect current-quarter revenue of $84 million to $90 million, adjusted EBITDA of $11 million to $14 million, and adjusted net income per share of $0.24 to $0.32 -- roughly in line with expectations. During the subsequent conference call, CalAmp CFO Rick Vitelle also noted the business should "strengthen as the year progresses, driven by growth in MRM telematics product revenues and our recurring revenue both domestically and with LoJack Italy."

CalAmp only just completed the integration of recently acquired vehicle recovery specialist LoJack this quarter, and has made it clear so far this year that it is actively leveraging LoJack's products to capitalize on incremental growth opportunities.

Given CalAmp's strong quarter, encouraging near-term guidance, and expectations for improving performance as the new fiscal year wears on, it's no surprise to see investors bidding up shares today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CalAmp Corp. Stock Quote
CalAmp Corp.
$6.31 (3.44%) $0.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.