What happened

Shares of CalAmp Corp. (NASDAQ:CAMP) rose 25.4% in September, according to data from S&P Global Market Intelligence, after the machine-to-machine communications specialist announced strong quarterly results.

More specifically, after driving modestly higher through the first few weeks of last month, CalAmp shares skyrocketed after the company confirmed that revenue in its most recent quarter declined 0.8% year over year to $89.8 million, while adjusted earnings per share remained flat at $0.27.

Of course, those results don't sound great at first glance. But keep in mind CalAmp's results in the same year-ago period included $6.7 million in sales from its now-shuttered Satellite segment. In addition, both revenue and earnings were slightly above the midpoints of CalAmp's respective financial guidance ranges.

CalAmp headquarters building

IMAGE SOURCE: CALAMP

So what

During the subsequent conference call, CalAmp management further stoked investors' enthusiasm by detailing an expanded relationship and record sales from key heavy-equipment customer Caterpillar, as well as a new deal with another unnamed global heavy equipment OEM that represents its "initial foray into telematics."

In addition, CalAmp secured its largest-ever software-as-a-service contract with a blue-chip global freight transport company. According to CEO Michael Burdiek, the two-years-in-the-making deal includes comprehensive telematics services to track mobile assets across North America for its big new client.

Now what

Looking ahead, CalAmp also told investors to expect revenue in its current fiscal third quarter to be in the range of $89 million to $94 million, with adjusted earnings per share of $0.27 to $0.33. By comparison, consensus models had called for roughly the same adjusted earnings of $0.30 per share on revenue near the low end of CalAmp's guidance range.

All things considered, CalAmp significant new customer wins continue to prove the value of its platforms. And it's worth noting that we're still in he earliest stages of CalAmp's growth, where investors can still look forward to many more new customers following suit as other industry leaders embrace CalAmp's tech. With that in mind, and given CalAmp's relative outperformance last quarter, I think the stock still has plenty of room to run from here.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends CalAmp. The Motley Fool has a disclosure policy.