For the second quarter, the developer and marketer of wireless technology solutions is expecting earnings per diluted share to be 19 cents on revenue close to $59 million.
Analysts are expecting earnings of 22 cents per share on revenue of nearly $63 million, Motley Fool reports.
Must Read: Warren Buffett's 25 Favorite Stocks
However, on Tuesday after the close, CalAmp reported strong earnings for the fiscal 2015 first quarter of $2.7 million, or 7 cents per diluted share on a GAAP basis, compared to $1.7 million, or 5 cents per diluted share for the fiscal 2014 first quarter. Adjusted non-GAAP earnings were $6.9 million, or 19 cents per diluted share versus $5.6 million, or 16 cents per diluted share for the year ago period. Total revenue increased to $59 million for the fiscal 2015 first quarter, compared to $53.7 million for the fiscal 2014 first quarter. Separately, TheStreet Ratings team rates CALAMP CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate CALAMP CORP (CAMP) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 23.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CAMP's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CAMP has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
- 35.24% is the gross profit margin for CALAMP CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CAMP's net profit margin of 5.12% significantly trails the industry average.
- Compared to its closing price of one year ago, CAMP's share price has jumped by 53.96%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- CALAMP CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CALAMP CORP reported lower earnings of $0.33 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.33).
- You can view the full analysis from the report here: CAMP Ratings Report
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.