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.
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.
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.
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.