CalAmp Corp. (CAMP) Shares Are Getting Shreded

The Oxnard, Calif.-based company guided second-quarter EPS between $0.17-$0.21 per share, on revenue of $57 million to $61 million. The consensus estimate was for EPS of $0.22 a share on $62.5 million in revenue.

The company however, said it expects Q2’15 to be significantly stronger than the first half of the year, as Wireless Datacom revenue growth is projected to accelerate due to resumed shipments to a key OEM customer in the solar power industry and continued healthy consumer demand in most of CalAmp’s other verticals.

For the most recent quarter ending May 31, CalAmp posted a GAAP net income of $2.7 million, or $0.07 per share, up from $1.7 million, or $0.05 per share, year-over-year [y/y].

Excluding stock-based compensation and other items, adjusted profit rose 23% to $6.9 million, or $0.19 per share, compared to $5.6 million, or $0.16 per share, for the same period last year. The consensus estimate was for EPS of $0.18.

Demand from its mobile resource management products drove a 17% y/y jump in the company’s wireless datacom segment, which offset a $1.8 million, or 14%, drop in satellite revenue.

The company’s revenue for the quarter was up 9.9% on a y/y basis.

Commenting on the first quarter fiscal 2015 results, CalAmp CEO Michael Burdiek said, “Overall, I am pleased with the solid first quarter performance across our enterprise….I am particularly encouraged by continued growth in auto insurance telematics revenue and a return to growth in fleet management in the first quarter. These factors more than offset a temporary decline in energy revenues and continued weakness in Latin America. In our Satellite segment, shipments made late in the quarter coupled with some demand for a high margin legacy product resulted in meaningful contributions from this segment to our operating cash flow and bottom-line profitability.”

After opening at $22.10, up 1.9 percent from Monday’s close, shares of CalAmp have given back about $3, or 13.51%, in gains. The stock, which currently trades at a 2016 forward P/E multiple of 17.95x, last traded at $19.08.

Through Tuesday’s closing, CAMP was up more than 51% over the past 52 weeks.