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CalAmp Corp. (CAMP +0.00%) announced solid fiscal second-quarter 2018 results on Thursday after the market closed, punctuated by continued strong growth of telematics product sales, the company's largest-ever software-as-a-service (SaaS) contract, and a number of expanded relationships with significant customers. Even so, CalAmp's results were largely in line with expectations, and shares of the machine-to-machine communications specialist are little changed in after-hours trading as of this writing.
Let's take a deeper look at what CalAmp accomplished in recent months, as well as what investors can expect going forward.
IMAGE SOURCE: GETTY IMAGES.
Metric |
Fiscal Q2 2018 |
Fiscal Q2 2017 |
Year-Over-Year Growth |
---|---|---|---|
Revenue |
$89.8 million |
$90.5 million |
(0.8%) |
Non-GAAP net income (loss) |
$9.6 million |
$10.1 million |
(5%) |
Non-GAAP earnings per share (diluted) |
$0.27 |
$0.27 |
0% |
Data source: CalAmp Corp.
CalAmp CEO Michael Burdiek stated:
We experienced accelerating momentum on multiple fronts in the quarter, including strong financial results. We continue to be a leader and pioneer in the Connected Vehicle and Industrial Internet of Things ["IoT"] marketplace. We announced a number of novel product releases and also expanded on our important partnerships in the quarter, including a contract award from a new blue-chip customer representing the largest SaaS contract in the company's history. We also expanded our relationship with Caterpillar and launched a new program with another global heavy equipment customer. We continue to make progress and achieved a number of important strategic milestones while establishing a solid foundation for long-term growth.
For the current fiscal third quarter, CalAmp expects revenue in the range of $89 million to $94 million, GAAP net income per share of $0.28 to $0.34, adjusted (non-GAAP) net income per share of $0.27 to $0.33, and adjusted EBITDA of $12 million to $14.5 million. By comparison -- and though we don't usually pay close attention to Wall Street's demands -- this guidance is roughly in line with consensus estimates for fiscal Q3 adjusted earnings of $0.30 per share on revenue of $90.8 million.
Though CalAmp's true growth is still masked as it laps the closure of its satellite business, this was an exceptional quarter in which CalAmp's solutions continued to gain traction with multiple big-customer wins. The company's relative strength should also begin to show as new programs begin to contribute to CalAmp's results in the coming quarters. I think CalAmp investors should be more than happy today, despite the market's initial muted reaction.