CalAmp Corp. (CAMP) Stock | Reports Record Earnings Results


CalAmp Corp.  (NASDAQ: CAMP)


CalAmp Corp. (CAMP), a wireless communications company announced on Thursday positive fiscal 2016 second quarter financial results.


CalAmp Corp. Earnings and Outlook

“Consolidated revenue up 18% year-over-year to a record $69.8 million. Wireless Datacom revenue up 23% year-over-year to a record $61.8 million. GAAP net income up 7% year-over-year with diluted GAAP EPS of $0.10.  Adjusted Basis (non-GAAP) net income up 30% with diluted non-GAAP EPS of $0.27.  Adjusted EBITDA margin of 16.9% compared to 14.1% in the second quarter last year. Operating cash flow of $12.4 million compared to $8.7 million in the second quarter last year. Total cash and marketable securities balance at August 31, 2015 of $218 million.” Market Wired


CalAmp Corp.  Ceo’s Comments

Commenting on the second quarter fiscal 2016 results, 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.”   Market Wired


CAMP Technical Analysis


CAMP gapped up in price on Friday to $17.50, up from the prior day’s close of $15.65 which is a 12% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on July 28th when the stock closed at $17.54.

Taking a look at the recent history of the stock we can see the stock has been on an uptrend ever since it hit its 52 week low of $14.01 on August 24th. Since then, the stock has been putting in higher highs on its upswings. On August 31st, the high was $16.62 and on the next upswing the high was $17.14 on September 16th. The next significant resistance level for the stock is $19 last reached on July 16th. That is the price when the down trend to the 52 week low (mentioned above) started. The stock has a relatively low float of 34.61 million shares and is trading on heavy volume 3.5 times the normal daily trading volume. Both of these factors make the stock a good candidate for the gap and go strategy. For trading purposes, my entry point would have been $17.60 looking for a run to $18.00. My stop loss would have been $17.40 fearing anything below that and the stock would start to fill in the gap up.


Company Profile

CalAmp Corp. provides wireless communications solutions for various applications worldwide. It operates in two segments, Wireless DataCom and Satellite. The Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, machine-to-machine (M2M) communications space, and other emerging markets that require connectivity anytime and anywhere. Its M2M and MRM solutions enable customers in energy, government, transportation, and automotive markets to optimize their operations by collecting, monitoring, and reporting business-critical data and required intelligence from remote and mobile assets. This segment offers a portfolio of wireless communications products, such as asset tracking devices, targeted telematics platforms, fixed and mobile wireless gateways, and multi-mode wireless routers; and cloud-based telematics platform-as-a-service and targeted software-as-a-service applications that facilitate the integration of the company’s and third party applications through application protocol interfaces. This segment sells its products and services through direct and indirect sales channels in the United States, as well as through sales personnel in Latin America, the Middle East, and Europe. The Satellite segment develops, manufactures, and sells direct-broadcast satellite outdoor customer premise equipment and whole home video networking devices for digital and high definition satellite television services. CalAmp Corp. was founded in 1981 and is headquartered in Oxnard, California.  Yahoo Finance