Analysts Strong on CalAmp Corp. (NASDAQ:CAMP)

Several analysts have recently weighed in on CalAmp Corp. (NASDAQ:CAMP), Mike Crawford of B. Riley & Co., LLC raising estimates and maintaining positive outlook with their Buy rating on the stock on Oct 02 2015 with a $32.50 price target, or 107.67% upside to the last closing price.

CAMP shares traded up 11% (to $17.40 at last check) after reporting above-consensus Q2 ’16 (Aug) results after the close on October 1. We also raise projections, as noted in our Key Points section below. For the period, CAMP beat by $2MM on the top line and a penny on the bottom, with $70MM revenue and $0.27 pro forma EPS in a record quarter, surpassing our/consensus estimates of $68MM and $0.26, respectively. Both Satellite and Wireless DataCom revenue increased sequentially, to $8.0MM and $61.8MM, respectively, and we see both components up both yoy and qoq in Q3 ’16 (Nov) as well. As in Q1, MRM revenues comprised about 60% of the Wireless DataCom total, or in this case $37MM. Wireless Networks revenue, meanwhile, grew over 20% yoy to $25MMM, buoyed not only by Caterpillar (CAT, NR) ramping back up toward the $7MM/q level now expected in Q4 (Feb), but also by broad-based strength across myriad verticals and geographies. As noted in our Preview, we believe the market was overly fearful of CAT given that company’s cyclical struggles, which in our opinion only affect CAMP on the margin. In any event, we believe CAMP’s relationship with CAT is in good shape, as evidenced by CAMP’s attainment in first full year of service of highest (Platinum Level) Certification as part of CAT’s Supplier Quality Excellence Process (SQEP). Just as importantly, we believe, CAT and other heavy equipment providers recognize the importance of telematics and big data analytics to their own enterprise, highlighting the strategic importance of the capabilities CAMP brings with its hardware and platform solutions to drive new revenue streams for these large enterprise customers. In this regard, CAMP is investing ‘heavily’ in this vertical today to catalyze future growth through customer and application expansion. For example, we believe CAMP is starting to work closely with heavy duty truck manufacturers to provide both fleet and asset management solutions including vehicle diagnostics.

CalAmp Corp. (NASDAQ:CAMP) is a proven leader in providing wireless communications solutions to a broad array of vertical market applications and customers. CalAmp’s extensive portfolio of intelligent communications devices, robust and scalable cloud service platform, and targeted software applications streamline otherwise complex Machine-to-Machine (M2M) deployments. These solutions enable customers to optimize their operations by collecting, monitoring and efficiently reporting business critical data and desired intelligence from high-value mobile and remote assets.

On Oct 01, 2015 CalAmp Corp. (NASDAQ:CAMP) leading provider of wireless products, services and solutions, today reported results for its second quarter ended August 31, 2015. Michael Burdiek, CalAmp’s President and Chief Executive Officer, said, “We had an outstanding second quarter, posting record revenues of $69.8 million and a 30% year-over-year increase in non-GAAP net income. Our continued operational execution resulted in Adjusted EBITDA of $11.8 million and operating cash flow of $12.4 million. During the quarter we experienced robust demand for our Mobile Resource Management (MRM) products from fleet management and asset tracking customers, along with solid growth in our Wireless Networks business. Our Satellite segment revenues were in-line with expectations while a favorable product mix drove higher gross margins and strong profitability. Our momentum exiting the quarter, coupled with an expanding pipeline of opportunities, is providing CalAmp with a strong tailwind heading into the second half of fiscal 2016.”

Fiscal 2016 Second Quarter Results Total revenue for the fiscal 2016 second quarter was a record $69.8 million compared to $59.2 million for the second quarter of fiscal 2015. Wireless Datacom revenue increased to $61.8 million from $50.2 million in the same period last year, while Satellite revenue was $8.0 million in the second quarter compared to $9.0 million in the comparable quarter last year.

 

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