CalAmp (CAMP) slipped to a loss in the third quarter from a profit last year, due to a restructuring charge for vacant offices, severance, and employee-related costs. Despite the results exceeding analysts’ expectations, the wireless communications company guided fourth-quarter results below consensus. Following this, the stock fell over 8% in the after hours.
Net loss for the quarter was $522,000 or $0.02 per share compared to a profit of $11.8 million or $0.33 per share a year ago. Adjusted earnings decreased 19.4% to $0.25 per share.
Revenue fell 6% to $88.5 million. This was due to supply chain execution challenges. Telematics Systems revenue dropped by 12% year-over-year due to a decline in legacy LoJack SVR product sales. However, Software & Subscription Services revenue jumped by 25% driven by freight transport subscriber additions and LoJack subscription services.
Looking ahead into the fourth quarter, CalAmp expects revenue in the range of $86 million to $92 million and adjusted earnings in the range of $0.23 to $0.29 per share. GAAP per share results are anticipated to be in the range of a loss of $0.02 to earnings of $0.04. Adjusted EBITDA is predicted to be $10 million to $14 million. The forecast includes the expected gain of about $2.5 million related to the legal settlement with a former LoJack supplier.
The company said it is taking steps to focus on its operational challenges as CalAmp was disappointed in the short-term execution around its supply chain diversification efforts. Looking into the future, the company believes to capitalize on its Software and Subscription Services (SaaS) pipeline and achieve its long-term growth targets.
During the third quarter, CalAmp entered into a multi-million dollar SaaS contract with a public cloud service provider for a high-value asset tracking solution. The company also entered into a global supply agreement with Telefonica, to provide intelligent telematics devices for fleet and asset management applications in Mexico with anticipated expansion across other Latin American and European markets.
The company announced a partnership with Overhaul Group to enable global transportation service providers with actionable intelligence and predictive analytics to improve supply chain efficiency. In the third quarter, CalAmp’s board of directors authorized a new one-year share repurchase program whereby it may repurchase up to $20 million of outstanding common stock.
Shares of CalAmp ended Thursday’s regular session down 2.31% at $12.69 on the Nasdaq. The stock has fallen over 40% in the year so far and over 43% in the past three months.
Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.
Most Popular
Earnings Preview: Home Depot’s Q3 report likely to reflect weak consumer demand
The US housing industry has been mostly resilient to headwinds like economic uncertainties so far this year. However, housing activity cooled in recent months as high mortgage rates and inflation
Take-Two Interactive (TTWO) will report Q2 2025 earnings this week, a few points to note
Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) stayed red on Monday. The stock has gained 16% over the past three months. The gaming company is set to report its second
Earnings Summary: Highlights of Loews Corporation’s (L) Q3 2024 report
Loews Corporation (NYSE: L), a diversified company with businesses in the insurance, energy, hospitality, and packaging industries, on Monday reported higher revenue and profit for the third quarter of 2024.
