NEW YORK (TheStreet) -- Shares of CalAmp (CAMP) - Get Report were falling 13.47% to $14.20 on heavy trading volume mid-Friday morning after the wireless communications provider posted worse-than-anticipated revenue for the fiscal 2017 second quarter and a downbeat outlook.
Following yesterday's closing bell, the Irvine, CA-based company reported revenue of $90.5 million for the second quarter, lower than analysts' expected $92.26 million.
Adjusted earnings met consensus at 27 cents per share for the period.
In the third quarter, CalAmp expects revenue between $81 million and $87 million, below Wall Street's projected $95.01 million.
CalAmp is looking for adjusted earnings per share of 24 cents to 30 cents. Analysts anticipate earnings of 31 cents in the third quarter.
The company said it remains "cautious" in the near term due to softer-than-expected demand in North America.
First Analysis downgraded CalAmp stock to "equal weight" from "overweight" following the results and cut its price target to $16 from $19, the Fly notes.
The firm said the shares are likely to remain range-bound until the company can boost investor confidence in its growth ability.
But Canaccord maintained a "buy" rating and $25 price target on CalAmp shares in a note released this morning.
The firm said its long-term thesis on the company is still "intact."
CalAmp's acquisition of vehicle protection company LoJack earlier this year provides a "strong" brand and a channel to catalyze longer-term growth, according to Canaccord.
More than 2.91 million shares of CalAmp have traded so far today, vs. the 30-day average volume of about 338,000 shares.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: CAMP