Analyst Michael Walkley, decreasing target from $25 to $23, continues to view CalAmp favorably on improving North American MRM market trends, Q4 and FY 2017 guidance posted above firm's expectations, long-term growth opportunities stemming from LoJack acquisition, ramping worldwide sales, an expanding product portfolio, a growing list of new customer wins and other catalysts.
CalAmp (NASDAQ:CAMP) has tumbled in after-hours trade, down 12.6%, after it posted a steep drop in fiscal Q2 profits and missed revenue expectations along with providing light guidance.
Still, the company is "seeing some firming of demand and is optimistic that the company will see MRM product revenues begin to improve later this fiscal year and into fiscal 2018."
For Q3 it's forecasting revenues of $81M-$87M, light of consensus for $95M, and non-GAAP EPS of $0.24-$0.30 (below expectations for $0.32). It also sees EBITDA coming in at $11M-$14M vs. consensus for $15.3M.
GAAP net income came in at $0.5M, down from a year-ago $3.5M. On a non-GAAP basis, net income was $10.1M vs. a year-ago $9.8M. EBITDA was $12.9M, just short of an expected $13M.
Revenue by segment: Wireless DataCom, $83.8M (up 35.6%); Satellite, $6.67M (down 16.5%). Operating income by segment: Wireless DataCom, $5.04M (down 33.1%); Satellite, $139,000 (down 91%).