Hollysys Automation Technologies, Ltd
The 10-second takeaway
For the quarter ended March 31 (Q3), Hollysys Automation Technologies, Ltd whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins increased, net margins expanded.
Hollysys Automation Technologies, Ltd logged revenue of $66.1 million. The three analysts polled by S&P Capital IQ expected a top line of $74.7 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $55.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The three earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS of $0.21 for Q3 were 24% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.3%, 100 basis points worse than the prior-year quarter. Operating margin was 17.8%, 50 basis points better than the prior-year quarter. Net margin was 17.4%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $89.6 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $326.3 million. The average EPS estimate is $0.99.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 52 members out of 79 rating the stock outperform, and 27 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Hollysys Automation Technologies, Ltd a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hollysys Automation Technologies, Ltd is outperform, with an average price target of $11.87.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.