Financial Trading Blog
Stock of the day 22/12/2014 – CalAmp Corp
The wireless communications software and hardware device producer started the year strong, reaching an all-time-high shares price of $34.81 in early March, after starting the year at $28.22. However, the Q4 2014 earnings release in April saw a massive reversal of fortunes for the hot stock. Despite seeing a 24% growth in year on year revenue, up to $59.8 million, and earnings per share of $0.20, investors were disappointed with these figures. This was due to the missing of analyst forecasts of $61.49 million in revenue and $0.21 EPS, alongside lower-than-expected company guidance figures.
This disappointment had a serious sting in the tail for CalAmp’s share prices, with stocks plummeting 24.5% in one day from $21.39 to $18.60. This decline continued into May, where the company reached its 2014 nadir at $14.75 per share. What followed was a relatively stable few months following this slump, despite a 12% decline following the Q1 2015 figures. However, October saw another big increase following the Q2 figures, from $17.88 to $20.01, with EPS of $0.21 and $59.20 million in revenue.
Whilst nowhere near the early-2014 highs, it has shown investors’ willingness to reward CalAmp for strong earnings releases; on the other hand, investors have been equally willing to punish the company for any disappointing figures. The next two quarters (including this Q3 2015) are meant to see huge growth for CalAmp, largely based on its Caterpillar OEM business starting in earnest. With that in mind, the company is predicted to announce $0.23 earnings per share and $63.26 million in revenue.
CalAmp is now trading around $20.16 as its earning release approaches; 9 stock analyst groups have the company at ‘buy’, with only one at ‘hold’. This is a positive sign for the company, especially when the short term target price of $28.06 is factored in. Whilst this price would only return the company to the same levels as at the start of 2014, it at least would have weathered a stormy year on the markets with minimal damage.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to machibet77.com.
