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Market News

CalAmp stock rises on upbeat Q2 results

CalAmp (CAMP) slipped to a loss in the second quarter from a profit last year due to a charge for the early retirement of debt. The results surpassed analysts’ expectations and the wireless communications company guided third-quarter in line with consensus. Following this, the stock rose over 2% in the after hours. Net loss for […]

September 27, 2018 2 min read
Market News

CalAmp (CAMP) slipped to a loss in the second quarter from a profit last year due to a charge for the early retirement of debt. The results surpassed analysts’ expectations and the wireless communications company guided third-quarter in line with consensus. Following this, the stock rose over 2% in the after hours. Net loss for […]

· September 27, 2018

CalAmp (CAMP) slipped to a loss in the second quarter from a profit last year due to a charge for the early retirement of debt. The results surpassed analysts’ expectations and the wireless communications company guided third-quarter in line with consensus. Following this, the stock rose over 2% in the after hours.

Net loss for the quarter was $0.85 million or $0.02 per share compared to a profit of $12.23 million or $0.34 per share a year ago, which included a $15 million gain on the legal settlement. Adjusted earnings increased 15% to $0.31 per share.

Revenue grew 7% to $96 million. Telematics Systems revenue increased by 4.1% year-over-year driven by strong growth in Network and OEM products revenue. Software & Subscription Services revenue jumped by 21% on its freight transport subscriber additions and its LoJack Italia business.

Looking ahead into the third quarter, CalAmp expects revenue in the range of $94 million to $99 million and adjusted EPS in the range of $0.29 to $0.35. GAAP earnings are anticipated to be in the range of $0.07 to $0.13 per share. Adjusted EBITDA is predicted to be $12 million to $16 million. The forecast includes the expected gain of about $2.5 million related to the legal settlement with a former LoJack supplier.

The company completed a $230 million convertible debt issuance with a portion of the proceeds or about $54 million used to repurchase outstanding convertible notes due in May 2020 and another $15 million used to repurchase outstanding common stock.

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Shares of CalAmp ended Thursday’s regular session down 1.20% at $22.28 on the Nasdaq.

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