The stock price of CalAmp Corp. (CAMP) plummeted $1.98 (10.04%) yesterday after the company declared a lower-than-expected financial outlook for the ensuing fourth quarter of fiscal 2015 (ending Feb 2015).
The company projects total revenue in the range of $66 million to $70 million for the fiscal fourth quarter. However, its mid-point of $68 million is well below the current Zacks Consensus Estimate of $71.4 million.
Non-GAAP earnings per share will be in the range of 26 cents to 30 cents. Assuming a stock-based compensation expense of 3 cents a share, its mid-point of 25 cents is below the current Zacks Consensus estimate of 27 cents (including stock-based compensation expenses).
CalAmp stated that although its Wireless Datacom business will continue to flourish in the near future, the Satellite business is yet to achieve the company’s expectations.
Notably, 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.
In the third quarter of fiscal 2015, the company generated $8.65 million in revenues from the Satellite segment, down a significant 37.2% year over year. CalAmp apprehends that revenues from this division will further decline to $8 million in the ensuing fourth quarter. This is far below management’s expectations of around $10 million of quarterly revenues from the Satellite business.
Other Stocks to Consider
CalAmp currently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the same industry include AU Optronics Corp. (AUO), AVX Corp. (AVX) and Rogers Corp. (ROG). Currently, all three stocks sport a Zacks Rank #1 (Strong Buy).
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