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But the M2M communications specialist left the market underwhelmed with light earnings guidance. Here's what investors need to know.
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CalAmp Corp. (CAMP +0.00%) announced strong fiscal third-quarter 2018 results on Dec. 21 after the market closed, setting fresh records for both revenue and profitability, while extending the recent momentum of its telematics and software initiatives. But CalAmp also followed up with seemingly conservative forward earnings guidance.
Let's take a closer look at what drove CalAmp's business over the past few months, and what investors can expect following the stock's 56% climb so far this year.
Image source: Getty Images.
| Metric |
Fiscal Q3 2018 |
Fiscal Q3 2017 |
Year-Over-Year Growth |
|---|---|---|---|
|
Revenue |
$93.7 million |
$83.4 million |
12.4% |
|
GAAP net income (loss) |
$11.8 million |
($1.5 million) |
N/A |
|
GAAP earnings per share (diluted) |
$0.33 |
($0.04) |
N/A |
Data source: CalAmp Corp.
CalAmp CEO Michael Burdiek stated:
We achieved record consolidated revenue and adjusted EBITDA in the quarter, while continuing to make steady progress on our strategic initiatives. We expanded our product portfolio and are uniquely positioned in the Connected Vehicle and Industrial Internet of Things market. Our Telematics Systems business sustained its recent strength, building upon our base of blue-chip customers, including Caterpillar. Our software and subscription opportunity pipeline strengthened as we broadened our technology portfolio to expand into highly attractive verticals.
For the current fiscal fourth quarter, CalAmp anticipates revenue in the range of $91 million to $96 million, GAAP net income per share of $0.26 to $0.32, adjusted EBITDA of $12 million to $15 million, and adjusted earnings per share of $0.27 to $0.33. By comparison, and though we don't usually pay close attention to Wall Street's demands, consensus estimates predicted that roughly the same revenue would translate to fiscal Q4 adjusted earnings near the high end of CalAmp's guidance range.
Apart from that mild bottom-line shortfall, however -- and knowing CalAmp has a propensity for under-promising and over-delivering -- there was little not to like about this solid performance, as the company continues to land large customers and steadily expand the reach of its telematics and subscription software services.
I think investors should be pleased with CalAmp's latest progress.