What happened

Connectivity specialist CalAmp (CAMP -0.05%) felt a bit unplugged on Friday. The company's stock was down by nearly 3% in late-afternoon trading after it published its results for the second quarter of fiscal 2022.

So what

After market hours on Thursday, CalAmp announced that it earned $79 million in revenue for the quarter, which was 6% higher than in the same period last year. The company's two business lines went in opposite directions: Software and subscription services' sales increased 24% to $41 million, but telematics declined 16% to make up the remainder.

Group of employees in a conference room some with laptops.

Image source: Getty Images.

On the bottom line, CalAmp flipped to a net profit. On an adjusted basis, it netted just over $2.9 million in the second quarter ($0.08 per share), a dramatic improvement over the $591 million loss in the second quarter of 2021.

That was good enough to beat the average analyst estimate of $0.06 per share. However, prognosticators following the stock were expecting a bit more on the top line; collectively, they were modeling just under $80 million for revenue.

Now what

Regarding future periods, CalAmp continues to not proffer guidance, saying "visibility into product shipments still remains uncertain due to global component supply shortages."

Uncertainty generally isn't good for a stock, and those shortages aren't helping CalAmp. Still, investors didn't take the revenue miss too badly, and there are still plenty of believers in the stock.

On Friday, analyst Anthony Stoss of Craig-Hallum slightly trimmed his price target on the shares from $16 to $14, yet maintained his buy recommendation.

Canaccord Genuity's T. Michael Walkley elected to keep both his $17 price target and buy recommendation on the stock, writing in an analyst note that, "Management continues to execute on its vision to drive a stronger mix of recurring revenue and improve margins," as indicated by the healthy increase in the software and subscription services segment.