The 10-second takeaway
For the quarter ended Aug. 31 (Q2), CalAmp beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins contracted, net margins grew.
CalAmp booked revenue of $44.0 million. The one analyst polled by S&P Capital IQ expected to see net sales of $43.4 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $33.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The one earnings estimate compiled by S&P Capital IQ averaged $0.16 per share. GAAP EPS of $0.12 for Q2 were 140% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.1%, 390 basis points worse than the prior-year quarter. Operating margin was 8.6%, 120 basis points worse than the prior-year quarter. Net margin was 8.3%, 430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $42.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $171.5 million. The average EPS estimate is $0.58.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 48 members out of 61 rating the stock outperform, and 13 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give CalAmp a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CalAmp is buy, with an average price target of $9.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Joel South has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.