CalAmp Profit Tops Estimates; Stock Up - Update

(RTTNews) - Wireless products company CalAmp Corp. (CAMP), Wednesday reported a lower second-quarter profit, hurt mostly by amortization costs and higher tax expense that offset a strong growth in revenue. Excluding items, earnings were higher and topped Wall Street estimates, and revenue also exceeded expectations.

The company provided a strong revenue outlook for the third quarter and CalAmp shares touched a new high for the year - gaining 7 percent to $20.1 in after-hours trading on the Nasdaq.

Oxnard, California-based CalAmp posted quarterly net income of $2.8 million or $0.08 per share, compared with $3.7 million or $0.12 per share last year.

Results for the recent quarter included amortization costs of $1.5 million related to the acquisition of Wireless Matrix.

Excluding items, adjusted earnings for the quarter were $6.8 million or $0.19 per share, compared with $4.9 million or $0.17 per share a year ago.

On average, five analysts polled by Thomson Reuters estimated earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter jumped 34 percent to $58.8 million from $44 million last year. Analysts expected revenue of $54.82 million for the quarter.

Wireless Datacom revenue was up 38 percent in the quarter, led by growth at its Mobile Resource Management products business.

While gross margin rose to 33.7 percent from 32.1 percent last year, it was offset by operating expenses that were higher by $5 million.

The company incurred deferred tax expense of $1.8 million for the quarter, while the tax liability in the prior year was $17 thousand.

For the third quarter, CalAmp expects net earnings of $0.07 to $0.10 per share, adjusted earnings of $0.19 to $0.23 per share and revenue of $59 million to $63 million. Analysts currently estimate earnings of $0.21 per share for the quarter, on revenue of $57.85 million.

CalAmp stock closed Wednesday at $18.70, up $0.50 or 2.75%, on a volume of about 1 million shares. In after hours, the stock gained $1.31 or 7.01%, trading at $20.01. In the last 52-week period, the stock trended in the range of $7.65 - $18.87.