What happened
Shares of CalAmp Corp. (CAMP +0.00%) were down 12.5% as of 3 p.m. EDT Friday after the machine-to-machine communications specialist announced solid fiscal fourth-quarter 2018 results, but followed with weaker-than-expected forward guidance.
CalAmp's revenue climbed 8.8% year over year to $94.4 million, and translated to adjusted earnings of $10.9 million, or $0.30 per share. These results were roughly in line with CalAmp's latest guidance, which called for revenue of $91 million to $96 million, and adjusted earnings per share of $0.27 to $0.33.
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So what
CalAmp's top-line growth was comprised of a 10.4% increase in telematics systems sales (to $78.3 million), and more modest 5.9% growth in software and subscription services sales (to $16.1 million). The company also delivered adjusted EBITDA of $13.1 million, well within its outlook range of $12 million to $15 million.
CEO Michael Burdiek noted the company had an eventful year, adding, "We realigned our global sales organization, armed our team with a comprehensive suite of SaaS solutions, and succeeded on closing several global enterprise opportunities in multiple market verticals."
To be sure, in addition to growing revenue under its long-standing relationship with Caterpillar to record levels last fiscal year, recall CalAmp only just commenced shipments to another heavy-equipment original equipment manufacturer two quarters ago. This quarter, CalAmp also announced a partnership with TransUnion to monetize its installed base of dormant LoJack vehicle-recovery devices.
Now what
For the first quarter of fiscal 2019, however, CalAmp told investors to expect revenue of $91 million to $95 million and adjusted earnings per share of $0.26 to $0.32. Most investors were looking for fiscal Q1 revenue and earnings near the high end of those ranges.
In the end, there's no denying that this was a great quarter. Plus, CalAmp's long-term story appears to remain intact. But given its underwhelming near-term guidance -- and with shares up nearly 30% over the past year leading up to this report -- it's hardly surprising to see CalAmp stock taking a step back today.
