What happened 

Shares of Hollysys Automation Technologies Ltd. (NASDAQ:HOLI) fell as much as 31.5% in trading Wednesday, after the company reported fiscal fourth-quarter 2018 results. By the time the market closed, some of those gains had been clawed back but were still down 11.1% for the day. 

So what

Revenue for the quarter was up 6.7% to $147.2 million, and net income attributable to shareholders rose 28% to $27.7 million, or $0.45 per share. Industrial automation was the highlight, with revenue up 46.2% to $64.0 million

A robotic arm in a factory.

Image source: Getty Images.

Adjusted earnings per share were $0.46 after pulling out one-time items, compared with analysts' expectations of $0.49. That's where investors were disappointed, and it's what sent shares lower. 

Now what

An earnings miss can often cause a quick reaction from traders, and that's what we saw this morning. What investors should remember is that revenue and earnings are still rising rapidly, and that's a positive for investors. I wouldn't be too concerned with a small earnings miss given the growth last quarter, but if we see continued misses the next few quarters, it might be more concerning in the long term. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.